Joe,

All that variance will be included in the end results. The problem is collecting the data. I don't know why we got to the point where we have to blow up 15 guns to find out what's happened over 150 years with thousands of guns. We have the field observations of owners/hunters/shooters and gunsmiths. That is valuable info, but not structured enough to predict the chances of damage of the average damascus barrel.
When taken barrel by barrel, statistical approach is weak, therefore each barrel should be judged on its own merits. When you ask a gunsmith about the safety of your barrels he will tell you that they are PROBABLY safe or not. His judgement is based on experience and data he collects on that particular barrel. But individual experience is exactly that.
I am faced with one question: What are my chances of blowing up a damascus barrel if I shoot 7000psi ammo. What if I shoot 10,000psi? How many rounds would a damascus barrel last on average basis? What is the minimum barrel wall thickness to decrease the chance of barrel blow up below 1 in a mil?