I'm not really sure how drop forging effects the toughness of 1060, but to give you an idea of it's toughness, it should be tougher than 1095 or similar carbon steels. The "60" and "95" in the 1060 and 1095 designates how much of the composition is carbon. For the 1060, it's 0.60 percent carbon. For the 1095, it's 0.95 percent carbon. In general, the more carbon content, the harder you can make the steel. However, as carbon content goes up, toughness goes down. S7 is 0.55 percent carbon, but has several other alloying elements. You can see the composition here:

http://www.crucibleservice.com/datash/dsS7v6.pdf

1060 has the carbon, as well as molybdenum. As far as I know, molybdenum enhances the effects of the carbon. In general, 1060 doesn't have enough carbon to be used often as a knife steel. 1060 may be good for swords or really big choppers, but as far as I know, for most knives it doesn't hold an edge very well.

I hope this helps you out a bit.