Current paradigm seems to be: the longer weapon is, the more damage it deals, the heavier it is, the slower it is and the more gold it cost. I feel it's bad paradigm.
Good one would be: Until certain point (say it's 92 or 95 reach in case of 1h swords, 105 in case of 2h swords) raise swing damage. From that point, damage decrease and speed decrease.
Right now, the longest swords are the weapon of choice. Sure, you pay more for them, it shouldn't be the only way to balance weapons.
