An outstanding analytical question, Ariel!
You are correct - these lines are result of extensive forging, BUT they develop on edges only! If it would be just result of overhammering/multiple forging cycles we'd see these lines throughout the entire width. I think it has to do with cooling as well = the edges cool faster than the core because they are thinner, and it allows the contrast to develop more "gracefully"... granting it has been properly hammered and from a top quality wootz ingot!
I do not think sham is a result of overhammering alone, I think it's more a result of low-contrast ingot to begin with, and perhaps under-hammering:-)
Also, the presense of these lines on the edge indicate the better (and perhaps earlier made) quality of the blade to me - I often see them on better patterned, such as Kirk laddered, blades. Not sure if grinding alone can create such an effect.
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