Okay, so if I'm interpreting this correctly... basically this feat allows you to, once per round, "toggle" your polearm from a reach weapon to a normal weapon.
Unless the feat in the Dragon Compendium is really cool, I think I've about decided on bastard sword. I'm going to spend the feat to be able to use it one-handed. With a low dex score I think I'll need the shield most of the time. And if I ever need to "swing for the fence" I still have a nice two-hander in the bastard sword also.
Out of curiousity... do you recall the attack penalty given through use of the monkey grip feat?