Might be worth noting for the non-metallurgists amongst us that a given grade of tool steel can be 'harder' or 'softer' depending on the heat treatment it's received.
Straight carbon steels (and the simpler alloys) achieve their maximum hardness when heated to their critical temperature and then cooled very fast - quenched. The rate of quench can be altered by using different quenchants; caustic soda is one of the fastest, brine is fast, cold water a bit slower, warm water slower still, then oils of various types and finally air (for straight carbon steels, oils and air tend to be too slow, but they work well for some alloy steels). A faster quench gives a harder steel.
However, in the fully-hard condition, the steel is very brittle. Some toughness can be re-introduced by tempering back, the amount of tempering controlling the final toughness, but at the expense of hardness.
Thus, 1% straight carbon steel hardened and tempered back to about 150 centigrade is very hard and quite brittle, but makes good finish turning tools for materials like brass. Temper back to 300 centigrade, and the steel loses a bit of hardness, but gains enough toughness to make springs and sawblades. Other types of tool are somewhere in between - you could have quite hard and slightly brittle paring chisels, or slightly softer but tougher mortice chisels from the same steel by controlling the tempering temperature.
Thus, it's not necessarily right to say that harder is better. Harder is more brittle, generally.