Wick and pom-pom: I know we'll probably never agree on what's "best". When I'm building knives and hawks in the 18th/19th century style I'm not just going for the "look", but I'm also trying to replicate what they used as closely as possible including materials, techniques, final fit and finish, and hardness - most period knives that have been tested are in the high 40's to mid 50's on the RC scale, unlike the hard blades of modern day which are in the upper 50's and low 60's, so for me and others I know "best" has to do more than with the ultimate heat treat wear, etc.
IMO - there's nothing "wrong" with using modern alloy steels, grinders, heat treat ovens, etc. but you're ending with a product whose capabilities are far beyond those used by our forefathers and for some that's a big part of the purpose - to experience life as closely as possible to our ancestors even in the little things - for me it isn't just about having the ultimate knife in terms of wear, sharpness, etc. I did that when making modern knives many years ago - at one time I had all the most modern equipment including heat treat ovens, used the ultimate steels of the day, read the manuals and did the scientific testing, etc., but since the mid-1970's I have chosen to build period knives in as many wasy possible as closely as to what was used "then" - for me, and many others I know, it's not just the outward appearance that counts......
From my point of view it's kind of like the folks who prefer to use the "fake" powders when the real thing is available or the "inliners" most of whom will never understand the difference and to whom I hold no grudge except when they try to prevent me from doing it the "traditional" way......
Frankly I've never understood the "battle" between the forgers and the stock removers, which has been going on since I can remember - we're all making knives and we're all doing it the way we choose - yes offer advice to the new guys when asked, but the idea that one has to say that one way is "better" (all too often with disdain) and the other "way" is crap (and all too often is intimated that it shouldn't even be considered) sucks, because it as much depends on the end purpose and what desire one has for the final outcome.
If my desire was just all about building the "ultimate" and being technologically "better" I sure wouldn't be shooting muzzle stuffers - and yes getting "there" is not always possible, but one can get close. As much as I would like to have a rifle gun with a period forged lock and wrought iron barrel that's just not economically feasible for me, but with knives and hawks I can get much closer to the originals in all ways without a huge cash outlay.
FWIW I've been building knives since 1961 and have used both forging and stock removal methods and you will NEVER hear me bad mouth another maker's choice of method (and yes I often follow those threads on BF and elsewhere).....
Frankly, if a maker wants to stand on his head while facing the full moon or if he wants to do everything in a modern machine shop setting than so be it, that's his choice and I firmly believe it's not my place or IMO anyone else's to tell him it's "wrong" - especially if the end product is what THEY wanted it to be and they know the difference.....the caveat being that they don't tout it as the best or only way.
BTW - most of us "charcoal and motor oil" types use vegetable oil or something similar - it smells a whole lot better than petroleum products for one and yes at times many of us use propane as fuel - we can't always stay "pure" due to various circumstances.....
Per the original question: I agree wholeheartedly - a 10xx steel in the 1065-1084 range is one of the most user friendly knife steels available and they also just happen to come as close as possible to the original steels as we can regularly get in steels - and they can be ground or forged........Steels like 1095, W2, and 01 IMO are not the best for beginners due to several factors, most of which you've discussed.
As to cost - my last forging setup cost less than $100.00 including a homemade anvil - last time I looked a good pro knife grinder costs around $1,500.00. Because I've set my anvil up properly when pounding I make no more noise than my belt grinder, which I use little anyway since I forge as close as possible to final shape (90% plus usually) and then file by hand, which makes little noise and can be downright relaxing.....and my dear wife prefers the pounding to the whine of the grinder......And it's simple - an anvil, a small propane forge, a couple of hammers and tongs, quenchant since I do harden myself, and some files. For forging just fittings it's even simpler.....
In so far as quality, as I noted above what's "best" is/can be a matter of different strokes - my perhaps less than optimum built knives, whether built by me or friends, meet their intended purpose(s) - they cut what I want them to cut as and when needed. I use a couple of them everyday in the shop for cutting leather, which is tough on any blade, and while they may not wear as well as the high tech alloy steels might when built right, they sharpen up quick and I'm right back to work.......
Mystery Steels - well they can be downright fun and often have a special place in one's heart - the hawk head below was made from a piece of wagon wheel wrought iron for the eye and a chunk of wagon wheel spring for most of the blade (you can see the demarcation line). I picked up the pieces many moons ago on South Pass, WY along the Oregon Trail while exploring with my best friend - nope it won't cut as well as hi-tech blades, but it sure holds precious memories and that's something real special - plus it's probably the last hawk head I'll ever forge due to injuries....