Actually, I really like that aspect of the sword. I've been experimenting in my own game with
--heirloom items which provide additional effects for one or more specific bloodlines
--bonded items which produce additional effects the longer they are wielded by a particular person (level is a natural extension of this)
--curses which take have different effects based on whether you want the item or not (TANSTAAFL -- no "try before you buy")
Effects are not always beneficial, but I only reveal initial effects with an Identify (if at all). It allows items to have a little more mystery to them. One of my players thinks his character is going insane, because of the side effects of the powers that he doesn't understand he's getting.
