Honestly, Z, if you really want the magic weapon... Ishmael will let you have it, even if you did insult him to his face. If Patlin allows it, we can just retcon the final part of the adventure so that Morulas gets the 2nd magic weapon. It's not that Ishmael discount the trust/appreciation that Nars and the others have for him. I think it was totally IC for them to say that. But if you really wanted it, you should've just asked.
Barring that, there are other ways to get past damage reduction. You could purchase scrolls of magic weapon/power stones of metaphysical weapon. In fact, since you can buy magic items, there are lots of ways you can get your character's combat effectiveness improved via scrolls, powerstones, potions and the like. And if you can't use any of these items, you can always buy them and ask your party's spellcaster to use them on you. If you have the money, then you can do something about your current weaknesses. That's the beauty of being a spellcaster/psionic.
As for shiny toys, not all of us play Just for the Shiny Toys.That's why I usually play a spellcaster of some sort: even if I'm boned in the treasure department, I can compensate somehow. But that's just me.
That said, re: Patlin's analysis. I LOVE the organic feel of LEW. Maybe it's the kind of fiction I read or maybe it's just how I am, but I like it when completely random strangers work for a cause and end up with some kind of unintentional synergy to work with it.
IMO, Part of the fun IS meeting the challenge and beating it despite the unusualness of the party's composition. I concur with El Jefe's comments regarded the monster and the final scene.
As for the rest of the adventure, I stick with my comments in the adventure thread. I liked it. And if there was some problem with balance (I personally didn't see one), then it's hard to fault you given the difficulties /obstacles surrounding adventure design (party levels, party variety, etc). In fact, you gave us some help already.
The bottom line: I had a great time and I have no complaints. I saw weaknesses in my own character (lack of 2 handed weapon, lack of magic item, to list a few) and I addressed them between adventures.