This term hasn't been used much around here lately, but whips got 'the shaft.' I wrote E.N. Arsenal - Whips, and I tried to make sure the feats made the whip useful in situations where its special traits are appropriate. Even with the exotic whip-sword, you still can't beat a greatsword for damage, but with the proper feats the whip (and whip variants) can make an excellent back-up weapon. Mobile warriors could even make use of the whip as a primary weapon, as long as they can keep foes with more traditional pointy weapons away from them.
Honestly, a "whip" is not a weapon. It's a tool, just like a grain-thresher is a tool. If people can develop threshers into flails to use as weapons, they should be able to create bladed whips from normal whips. Bladed whips have bits of sharpened metal woven along the length of the whip so it can be used to slash as well as crack, and the end of the whip is a flexible sharpened chain.
Oh, and I think the rules are a little harsh on whips. As written, you can hurt someone wearing full plate by punching them with your fist, but you can't do it with a whip. The whole 'nonlethal damage, plus you can't hit armored things' is just a little too mean. I do heartily recommend you pick up E.N. Arsenal - Whips, to see some of the new feats and optional rules to make whips more useable. *grin*