I'm a little late to the party, but here are my thoughts. Kitchen knives are certainly a slippery slope if you want to start looking at really nice knives (far superior to Henkels, Wusthof, Shun, etc.), often of the Japanese variety. If you want to fully jump into some of the craziness of this world, there are multiple forums for enthusiasts where they'll gladly help you spend money. I'm a member of and enjoy kitchenknifeforums.com, but there are others.
To make some big generalizations, there are a few main differences between most Japanese and Western knives. 1) Japanese knives usually don't have a bolster that extends to the edge, making sharpening easier. 2) Japanese knives usually have a straighter edge, while Western knives usually have more of a belly (easier for rock-chopping). 3) Japanese knives usually have steel that is harder. That means you can sharpen to a finer angle and get really good cutting performance, but it's also usually easier to chip. Steel type matters a lot, of course. 4) Japanese knifes usually tend to be a bit lighter and more nimble. There are plenty more differences, but those are a few that come to mind.
For a good Japanese knife, I'd highly recommend using a good whetstone (practice makes perfect). Electric sharpeners can wreak havoc on the finer, harder edge of a good Japanese blade, although there are some out there that can work. Along similar lines, don't use a honing steel on the edge of a high-hardness Japanese knife. The lower hardness of a Western knife means that the edge rolls over with use and can be straightened multiple times with a honing steel. On a Japanese knife with high hardness, the edge doesn't really roll over in use, and the pressure of the steel on a small contact point along the edge can cause micro chips. A ceramic honing rod can work, but just using a stone is better.
The profile, thickness behind the edge, and other aspects (an easy rabbit hole to go down, with tons of opinions) can really make a big difference in cutting performance. Many often say this is more important than the steel choice. So, if you want a good knife, go with a respected manufacturer (many you will have never heard of, but the knife forums can enlighten you). I'm not really referencing Henkels/Wusthof/Shun here, although they all make some decent knifes if that's the style you're looking for.
A lot will also come down to how you plan to take care of the knife. If you'll put it in the dishwasher or store it loose in a drawer, get a Western knife with a softer steel that can take the abuse. If you'll be a bit more careful with it, options like carbon steel (get really sharp and easy to sharpen, but also rust) and wood handles become options.
For Japanese knives, two that I think are excellent and don't break the bank are the Tojiro DP series (such as the F-808), which was mentioned earlier, and the Gesshin Stainless gyuto (
link #1 or
link #2, depending on the handle you're interested in). It's easy to get into the $300+ range for some of the nicer Japanese knives. Others here have mentioned the Victorinox chef's knife. I think that's a decent knife, especially in bang-for-the-buck, but I also think for a little more (depending on where you buy it, as prices vary quite a bit), stepping up to the Tojiro DP is worthwhile.
Cutting boards are of course worth considering, with end grain wood (maple, cherry, walnut, etc.) usually considered the best. Bamboo has a lot of silica content, which can dull knives, but I'd say is still better than some other options out there. Please don't use glass or a granite counter. Please.
Those are just my thoughts. These choices can be a very personal thing and the same knife doesn't work for everyone. You can pay all the way from barely functional to work-of-art prices, although at some point you get diminishing returns on performance for the price (often at a higher price point that many consider paying for a single knife) and shift to paying for beautiful works of art that you enjoy holding and using. There's a middle ground in there somewhere too.
Good luck!
Tyler