Whether or not powerful metals with secret production techniques in history were more powerful than the stuff we can make with the techniques we know is unanswerable if we don't know the techniques ancient smiths used.
Either way, to assert superiority of the past over the present or vice versa are both unresolvable debates.
Even with our modern metallurgy, who knows if somebody developed a counter-intuitive and yet insightful way to pull off results that we nowadays lack to incentive to devote resources to reproducing.
Ah, but the thing is, there are no ancient secret steels that I know of at least. My statment about them was made tongue in the cheek. Now the smiths of old achieved very good results in what they did across the globe, using experimentation, tradition and possibly good deal of accidents to come up with some pretty amazing stuff, but they can't really compete with modern material science in terms of end product performance. Ofc, there is nothing inheritly wrong about the last paragraph I quoted from you either.
While I don't think the exact methods they used for making wootz in the past are known, we do know what kind of end products came out from it, and to a good degree know why they came out of it like they did and can even replicate the said products in terms of performance, if not entirely in form.
It is also worth noting that the historical wootz blades really aren't
that hard. Within margins or even below the finer European blades of the same time.
Heres one of Verhoeven's papers on wootz:
http://www.tms.org/pubs/journals/JOM/9809/Verhoeven-9809.htmlAnd a site of a modern wootz making smith:
http://doorcountyforgeworks.com/Wootz.htmlBit more on the actual topic of this thread, I don't think the combat example in OP is really that wrong. GCS isn't really that big, not even half the size of troll, so it makes sense that a fully armed dwarf can take it down if it can't inject it's poison. However the game really begs for some kind of "go for the throat" mechanic, as that kind of behaviour is pretty instinctive in many animals (mammals at least). That would help finishing restrained or uncouncious creatures who have otherwise impenetrable armor.
The group combat machanics also need some improvements. I'd really love to see a large group of lesser fighter restrain and slit a throat of a much more skilled combatant. But that will be far in the future with the current dorf AI I think. Currently, when you pit a highly skilled dwarf with a shield against a group of less skilled elves with wooden weapons, you get this nifty combat report page filled entirely out with shield blocks.
What do you even call that? Space-time parallel shield block? Do you have to shout that out loud for it to work?