Thanks all,
I sharpened the punches with a diamond hone then a 1000x waterstone. That improved things and I was able to punch what I needed out in an hour. I now have 80 discs 32mm in diameter. Next up is to punch out the middle portion. Hopefully punching the inner hole will be even easier - I am cutting less leather this go round.
Have to agree with the comment on the tools - my set, which cost $25 on amazon, isn't great. The centre punch set screw won't hold and the punches were very dull. But even with what I've invested in tools and leather I will still be saving close to $80. And I still have close to 5 square feet of leather for my next project.