I don't know how to explain it any simpler than that! I'll try though:
1.Stainless makes a poor knife blade; it's brittle and hard to sharpen
2. 1095 carbon steel is a high carbon steel which is resilient and easy to sharpen
3. The Pilot's Survival knife is made of 1095 carbon steel. 1095 carbon steel is almost identical to #1 tool steel
4. #1 tool steel is what tools such as files and saw blades are made from
5. Old files and saw blades were the most prized items for a blacksmith to use to forge knives with until raw iron became easily and cheaply obtainable
6. 1095 carbon steel was the favorite steel for knife makers and users when it became easily available in the 19th century
7. Stainless became popular after WWII for specialty knives such as diving and later spread because it was "cool"
8. The Pilot's Survival Knife is in no way awkward; it works quite well for anything it's called on to do except it's to small for really heavy work
I'm sorry but as far as I know this is simply not the case.
Stainless steel is as far as I'm aware not brittle.
Brittleness is a result of high hardness - stainless steels generally do not obtain the same hardness that carbon steel can. ergo a carbon steel blade is generally more brittle. - Stainless sacrifices hardness for corrosion resistance. (high chromium % required)
1095 is a good steel - bog standard carbon steel.
by #1 do you mean 01? - 01 is again a good steel and is very popular for blades these days.
- either way it is not what files or saw blades are made from.
Files are made from W1 -a very good steel which make very tough blades (as it happens this is my favourite steel)
Saw blades - depending on what type of saw you are referring to are made from a multitude steels including L-6 and IIRC 15n20
hacksaw blades are often made from highspeed steels - or often these days bi-metal. again not 01.
I don't understand your point regarding smiths using old files until "Raw iron" became available. - are you suggesting that they used old files for knives then switched over to using iron to forge knives? - please spell out you reply for this point in particular.
Cheers