I guess there are more reasons to the situation you mentioned.
First, it is the aura of super-steel that "Oriental Damascus" has aquired over the centuries.
Second, it is the scarcity of wootz blades.
Third, may be that a wootz blade is guaranteed antique and genuine.
In my oppinion, the fame of wootz was well deserved up to the 16th century (debatable) since its mechanical properties were superior to most European steels. However, begining with 16th century, European steels improved dramatically and became equal or even superior to wootz. Yet, since the Europeans couldn't create wootz themselves, the aura of oriental mistique remained and even grew further.
As with regards, to wootz scarcity, well, I don't think it is that scarce after all, but the fact that even today there isn't an economically efficient way to produce it, just adds to its fame and mistique.
The third reason is however the only valid one since you will never find a fake wootz blade, unless it isn't wootz but only made to look like it.
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