Idk I think the weapon system is pretty well balanced as it is
I think so, too.
I remedied this problem by buffing their roundness because swords and dagger have cross guards to block with and are very well balanced compared to other weapons in history.
I think you misunderstand. The lower block value is not a problem, it's intentional, because of game balance.
Dual-wielding weapons that wouldn't be possible to wield due to their size, not just their weight.
You cannot mix "realism" and superpowers. With as much LStr as it takes AStr to dual-wield halberds, you can kick down weaker walls (you can try it in UT, it's fun!). When the PC has enough AStr to dual-wield halberds, they are basically superstrong and can wield whatever they please.
It's not that bad, I gave it a try, and I can easily wield a knife with both my hands. But I do agree that small weapons are generally suited for one hand because they're so small and light. But if you had a knife made of weighty material, you better use it in two hands.
And can you swing with it at an opponent? Or at least try stabbing it into something. It will be very awkward, if you can even retain your hold.