Yeah the higher the rank of aoe, less percentage of damage is applied to each block.
So you would want to balance it by getting the Devastating Damage boon on there too
Yea, the usual combination is AOE + Damage + Durability or Speed
For the start to make the forging as easy as possible it is good to let slip in any 3rd boon which is not “Special” or “Effect” category. With that you can then better target the main two: AOE and Damage.
Devastating Damage Lvl6. mitigates the 60% loss on titanium hammer.
Note that while your AoE tool damage per block goes down, the total damage dealt actually increases.
Since the tool stats show damage per block, you also see it decreasing after applying AoE boon of any type.
Pls post your success when you get a chance to do it! It’s always fun to see folks getting in to forging and watching them become successful with it.