With the rework of Hidden Blade, Shrouded daggers lost its damage increase per bounce.
However, I find this effect was a real identity of the skill and making it very unique as this effect was indeed the only (I think) to require such a good positionning (aside from flank/behind mechanic) while selecting the most appropriate target if you wanted to maximize damage.
This made this skill very fun to use and very rewarding only when used appropriately.
I would really love to see this effect come back (even with a damage nerf on first (second) bounce).