that cites your article, but also notes that "The legends associated with the excellent properties of the wootz steel and the beautiful patterns on Damascus blades caught the imagination of European scientists in the 17th-19th centuries since the use of high-carbon iron alloys was not really known previously in Europe and hence played an important role in the development of modern metallurgy."  (Emphasis added.)  So yes, carbon had been added to iron for centuries, but not to the extent necessary to create high-carbon steel.  Furthermore, you correctly note that accidental impurities other than carbon also had something to do with the "magical" blades.

Finally, note that the Damascus blades were not the only kind of steel blades.  Damascus blades had a fine serration to them that made it possible to cut easily through silk, and flesh, while European steel was unserrated, and better for cutting through iron, and armor.  There is a story that Richard II, on meeting Saladin, attempted to impress him by cutting an iron bar with his sword.  Saladin responded by cutting a silk cushion with his sword.  Both swords were probably made of high-grade steel, but Richard's was not serrated.

One final note.  One reason old swords were valued in Europe is that swords made of iron or low-grade steel did not last long.  A sword that was constantly used, and yet survived, was likely to be true steel, "unbreakable" in battle.

“I dislike Allegory - the conscious and intentional allegory - yet any attempt to explain the purport of myth or fairytale must use allegorical language.  (And, of course, the more 'life' a story has the more readily will it be susceptible of allegorical interpretations: while the better a deliberate allegory is made the more nearly will it be acceptable just as a story.)” (From Tolkien Letter # 131.)