Wombat safe: you heard it here first.
If memory serves correctly, there are a couple of skills for which you specifically need an edged small weapon physrep (i.e. a dagger):
Assail
Skill (Periodic), Attack (Backstab), Melee
This attack skill inflicts Direct Body damage equal to a character's normal backstab damage quintupled. The strike must be delivered from behind, and to the back of your opponent. You must call out the total damage after the name of the skill, so that you hit your opponent and then call Assail x Body, where x is the damage total. This skill must be performed with a One Handed Edged or smaller edged weapon.
Achilles Strike
Skill (Periodic), Attack, Melee, Weapon (Edged), Area Specific (Ankles)
This attack skill severs both of an opponent’s Achilles tendons. The attack will cause excruciating pain and render both of the opponent’s legs injured as though severed. To strike with this skill, you must be wielding an edged weapon of any size, and must slash your blade across the back of your opponent’s ankles.
Also (perhaps more relevant to you as a Smith):
Leather Restraints
Leather Restraints are simple strips of leather that can be used to tie the hands or feet... Another character with an edged weapon can cut leather restraints instantly.
However, on the plus side, many flavours of undead take double damage from blunt weapons of all sizes. So it sort of balances out? Or something?
Hope that helps!