Keith,
A couple of thoughts. The basic ribbons came from a rolling mill, this is the case for Belgium, where they were rolled while red hot. At the forge, they were subjected to 150+ heatings. I have seen blacksmiths working. They often have a small specialized ladle and a bucket or at least of pile of borax sitting near by. Watching the documentary neither of these is present. Yes, they were expected to handle pressure. The proof process insured that they could indeed handle it.
I read an interesting article circa 1900. The author spoke about opening day "in the marsh" and the number of exploded guns both fluid and damascus that would result. I think many of the "mistakes" have long since ended up on the junk pile. See the article posted above about sand holes and cracks. We simply do not observe these defects today in any great number. The "grays" are a separate matter. The Belgians blamed that on the coke used in the smelting process. Their solution was to continue to use charcoal smelting for damascus barrels.
Pete