No...
All else being equal as for the material one starts out with, a properly made machined Forging will always be a superior item than anything indifferently milled out of 'billet'.
My response is a guess, as neither of us have the details at to why a manufacturing process was selected at any time in S&W history.
Your response, as is mine, are guesses, the staff that selected forging as a process at S&W are all pushing up daisies.
I agree with your details and knowledge as to why one material is better than the other, but,,,,,,,,,,,, again we are guessing as to why any material and process is selected.
I doubt the inspection techniques were available to fully understand what S&W was doing to parts when forging was starting to be used.
Heck, understanding why hydrogen embrittled steel was being studied in universities in the mid 1970's. (I was there)
Metallurgy as a science rather than an art was in it's infancy in the 1960's.
S&W made the forgings as an art, for cost savings. (My opinion)
Heck, if the guns NEEDED forged triggers and hammers, we would not see the success of MIM.
Many machinists could make a machined trigger successfully.
Many do, and are successful enough to make money.
Machining is a much lower cost technique for low volume manufacturing as compared to forging.
The opposite was true when S&W was high volume making triggers.
As usual this is JMHO, and educated guess.