The preferred stainless steel for runners is
440C. It can be hardened to Rockwell 60C, although I think runners are typically tempered down to about 54C. This hardness generally keeps an edge for many days of sailing.
To give you an idea of the how tough 440C is, here is a quote about it's machinability:
In the annealed condition this grade is relatively easily machined; approximately the same as for high speed steel. If this grade is hardened machining becomes very difficult and probably impossible.
Some runners (ex. slush runners) are made using 316 or 304/306 stainless because those are the only alloys commonly available in L and T sections.
Both of those alloys can not be hardened, so they are relatively soft and require more frequent sharpening.
Re: parallel sanding grooves - most people I know of have sharpeners with the belt running parallel to the runner's edge. Many people have reversible sharpeners so the belt always runs from the front to the rear of the runner. I don't know anyone who intentionally leaves scratches/grooves on their runners. Hand polishing to 600+ grit seems to be the standard practice these days.