Damascus in the traditional sense is a Wootz type steel, a high carbon and high cementite alloy of steel. The carbon darkens, the cementite shines giving the blade a distinctive patterning. The forging technique has been lost though various theories attempt to recreate it.
Modern Damascus is a blend of a high carbon and a high Nickel steel. The two steels are forged together, folded in various patterns or folded randomly creating thin layers. This is technically pattern welding and is the same basic welding technique as in traditional Japanese swords. Similarly, the vikings had developed a spiral pattenr welding technique. This pattern welded steel (modern damascus) is then shaped, tempered, ground and then acid dipped. The acid dip brings out the pattern by reacting with and darkening the high carbon steel. The higher nickel steel resists the reaction more and remains shiny.
These steels are claimed to have the benefits of hardness and edge holding from the carbon steel while having a toughness from the softer high nickel steel. Additionally micro serrations are attributed to the steel at the edge where the two steels wear and sharpen differently.
In actual practice, modern powder metallurgy can achieve higher performance steels. In aesthetics, the Damascus patterns are quite beautiful. There are modern stainless versions of Damascus now as well (though being stainless, it's not a true Damascus), often used to clad a high performing steel such as VG10. This cladding or san mai technique lets you use a thinner piece of expensive performance steel and clad it in a cheaper softer more stain resistant steel. This gives you the benefits claimed above of toughness without much brittleness except at the edge itself. The clad steels are often now an inexpensive stainless Damascus. Overall, this should result in a slightly cheaper blade, but is often marketed as a premium.
Thus the description of Faux Damascus.
Devin Thomas is a master of modern pattern welding and his web page shows some wonderful examples of what's possible http://www.devinthomas.com/
The "hamon" is an often related topic. This is a visual discontinuity in the steel of the blade produced by a technique known as Differential Hardening. The lower 1/3 or so of the blade, the edge area, is hardened to a higher temper. This creates good edge holding ability, but leads to a more brittle steel. The thicker remainder of the blade is hardened less so it's somewhat softer, giving it toughness. But you normally temper the whole blade at once so the thicker part of the blade is buffered from the heat of the tempering, traditionally through a clay coating on that part of the steel. With modern equipment, specific heating and cooling methods are now sometimes used as well that achieve the same result.
Birch wood is generally a pretty bland wood for knife handles. It's quite light in color and without interesting grain though it's not unpleasant. Specialty varieties such as Birdseye command a higher price and offer more visual interest. An infected/rotted variety of birch has led to what is called Spalted Birch and is quite pleasing at least to my eye at least.
The features of the linked knife then are more aesthetic than performance oriented. And that's fine. I've bought a number of knives for aesthetic premiums over the standard version, though usually pocket knives.