Lol, yes. They're slower and deal less damage. = They're still faster and deal at least as much damage as 2h 
Why would you even bring the inner balance of polearms to the discussion? It's balanced for /polearms/ yes, but as a whole it's not if 2h stab becomes crap.
38 dmg is medium? Riight, okay? Then all 2h except the Flamburger deal medium damage and your point's moot.
And yeah, polearm animation is better (for slashes) except in length. It doesn't glance as easily and it's faster.
If you can't see why 2h vs polearms fits the topic (even after the explanations given before) then I can't help you.
You can't say polearms have better damage and length. It's not true. Some polearms have better length but less damage, some are longer with less damage. I'm pretty sure there aren't any with massive damage length and speed. That's where the "internal balance" of polearms comes in - your faulty logic - you can't talk about polearms as a whole and compare it to a particuler set of 2h weapons.
They are pretty balanced.
38 damage is medium, yes, there are high tier weapons with damage in the mid 40s. The long hafted blade (I'm assuming that's the 38 damage you're talking about) is balanced by pathetic thrust damage, and slightly less damge than the high tier 2h swords.
I'm pretty sure you're arguing that close range stabs are essential because they are what balances 2h weapons with polearms? Let's assume this is true. First, both weapon classes have this ability. Second, there are other ways to balance things than a faulty game mechanic.
Lastly, I'm pretty positive that the 2h slashes are less likely to glance at close range. Test it. Stand nose to nose with someone, slash with a longhafter blade, and then try with a Bastard sword. Tell me which (if either) glances. If niether of them glance, that's just another problem. You're taking away the advantage of close range fighting from 1h weapons.
