Katanas fall into that romanticized weapons trope that is commonly perpetuated by those ignorant of the truth and because of propaganda. List of weapons that are overrated. -katana -English Longbow -magnum -Greek Sarissa(spear that was popularized for quite some time way back when, no one mentions it now) -roman gladius(most people are actually thinking of a Spatha when they think gladius) The list can go on but I'll stop.
Both European and Japanese swords were mythologized. However, they ended up taking different trajectories.
In Europe, medieval warriors, and their swords with them, were played down as simple and brutish. As a result, European swords have often been portrayed as little better than sharpened metal clubs. I've seen this attitude traced back to the Victorian Era, when people thought they were superior and more sophisticated with their "gentlemanly" fencing.
In Japan, it went the other direction. The Japanese had long had a reverence for the sword. It was a symbol of status and power, but also managed to achieve some religious significance as the embodiment of the four elements. When the age of the Samurai came to a very sudden and abrupt end, Japanese society underwent some radical changes. It's little wonder, then, that people began to look back longingly at the age of the Samurai and began to romanticize it. As they did, the samurai were elevated to the level of demigods. The katana, as the symbol of the samurai, was elevated with them. And that elevated status of both warrior and sword was carried into literature and film.
This was all likely aided by the fact that Japanese fencing techniques had been codified into a system of martial arts whereas European techniques has been lost and forgotten. No one really knew how Europeans fought with swords, so what you got in film and on stage was a depiction based on the Victorian attitude. It wasn't until the last couple of decades of the 20th century that people began to earnestly try to reconstruct European fighting styles. Just like in Japan, the old European fighting masters opened schools. Some of them also wrote down their techniques in books. It was from these fighting manuals that they began to reconstruct European techniques. What they found was the their fighting styles were actually quite sophisticated. In fact, they were on par with anything out of Asia.
As a side note and clarification, yes, there was some romanticizing of the European knight. That romanticizing focused mostly on courtly life and chivalry, much as bushido was similarly romanticized. It did not really carry over to the battlefield, though.