This seems to imply that there will NEVER be playable large-size creatures in 4e, unless they have to wield undersized weapons, or else have some typically ham-fisted rule which says "Well, the weapons they wield LOOK like they're large size, but, in fact, they do damage as if they were normal." (Maybe they do +1 or something, or, once per encounter, function as if they were ACTUALLY large size.)
I have been wondering about this too. There are several ways they could do it.
1. Bring back racial penalties. -2 to attack will more-or-less balance oversized weapons, and the extra surface area of large creatures is a sort of hidden defense penalty (since more creatures can attack you and it's harder to have cover).
4e has a "races don't carry penalties" dictum that seems fine as a general guideline, but if they stick to it like gospel it will lead to much stoopid, especially when designing wacky racial concepts. 4e threw out a lot of sacred cows so I hope the designers aren't instituting new ones.
2. Partial abilities. Maybe the oversized weapon counts as a normal-sized weapon for Encounter and Daily powers? That way your At-Wills are still a bit better than the other guy's, but your 4[W] Encounter attack isn't disgusting. Or maybe oversize is just a flat +1 or +2 damage -- not as good as monster weapons but not terrible (there are feats that do that and no one considers them underpowered).
This is the sort of hand-waving you mention above, but any sort of playable monster rules will require a certain amount of hand-waving. One of the main reasons
Savage Species sucked so bad is that they refused to impose any hand-waving at all, and tried to balance the monsters exactly as written, which doesn't work very well. I think it's a lot more important for the monster races' rules to capture the flavor of their
MM counterparts than to match up exactly.
3. Feats/Multiclassing. Maybe the PC ogre starts out as Medium sized (he's a young ogre) and needs to take a feat to become large and another to wield oversized weapons. Or worse, you need to power-swap your Utility powers to do it. More elaborate races could power-swap their attack powers (for example, a mind flayer wouldn't start with
mind blast but could trade an Encounter power to get it). This is sort of like 3.x's monster classes or racial classes translated into 4e terms.
I'm convinced that we will see a 4e
Savage Species eventually and that it will be a lot better than the 3.x one. Even if Wizards announces that "no, it would be too imbalanced, we're going to stick with medium humanoids and just trickle them out through DDI," then you know a third-party publisher would snatch up that gauntlet real quick.
-- 77IM