Ridley's Cohort said:
My personal feeling is the fix is not necessarily boost the potency of TWF but further tone down the feat cost.
Of course, I have always advocated changing twf 3 feats into just a single twf feat that scales as you go up in levels, it is unfortunate that it is not what is done now. That is a change I've made in my games, it goes nicely, but at that point there have to be some minor alterations to the ranger class.
It does bother me a bit that thf are above on damage, ahead in most options, and costs less feats. With it only costing one most of these problems just go away.
As for grappling though
SRD:
Attack Your Opponent: You can make an attack with an unarmed strike, natural weapon, or light weapon against another character you are grappling. You take a –4 penalty on such attacks.
You can’t attack with two weapons while grappling, even if both are light weapons
and
Pin Your Opponent:
You can hold your opponent immobile for 1 round by winning an opposed grapple check (made in place of an attack). Once you have an opponent pinned, you have a few options available to you (see below).
and
If You’re Pinned by an Opponent
When an opponent has pinned you, you are held immobile (but not helpless) for 1 round. While you’re pinned, you take a –4 penalty to your AC against opponents other than the one pinning you. At your opponent’s option, you may also be unable to speak. On your turn, you can try to escape the pin by making an opposed grapple check in place of an attack. You can make an Escape Artist check in place of your grapple check if you want, but this requires a standard action. If you win, you escape the pin, but you’re still grappling.
With all of that I'd have to say that either character build is in serious trouble in that fight once grappled

Neither side has any huge advantage. +30 or higher grapple checks are hard to overcome.