ok, their was a problem wielding large daggers, but what’s the problem with a short sword a human wields over a long sword a halfing wields. They are the same are they not? i can fully see why they might have changed wielding a weapon not meant for you as a -2 to stop the 2d6 daggers, but if the weapon is virtually the same stat wise, why the heck does it matter? Their is no imbalance, and thus no point to the penalty.
All you really need to do is add a proviso about hardness not being absolute, but partially affected by the way its wielded, and that seems to fix any exploits. If it cant be exploited, is the -2 really necessary?
i say use coolness over redundent rules that dont add fun to the game.