1) It's a -lot- simpler, even with it's 5 levels, than a "Build a Weapon" system, which is what you initially designed.I like the idea, but it is completely opposite of my aim.
Also, I would not call 5 categories simple.
Maybe if you kept it at 3. Basic, Advanced, Master.
But we do not need 5 base damage dice categories to determine how someone is a good weapon user.
Having extra attack(s) feature, fighting style, battle maneuvers, even investment in STR or DEX is enough to describe someone as good or bad at fighting.
Also, I do not know why people value Versatile trait same as finesse? Versatile is next to useless, kind of like Rangers favored enemy.
2) There's only 3 Categories. B/S/P. The five levels are a characters Proficiency over the weapon. So you would give every character class a starting proficiency rank for weapon type (Basic Slashing, Simple Piercing, Skilled Bludgeoning, for a Cleric as an example).
3) All those features work for classes that have those improvements, but does nothing for Rogues, Warlocks, or other characters who want to flex their character's different-from-standard combat style without having to multiclass. Which is where the ability to turn a Dagger into a d10 weapon is pretty attractive. Or, y'know, Baseball Bat people unconscious with an amusing "Thwack".
4) I treat Versatile and Finesse as similar 'cause while Finesse reduces MAD for certain characters, I use a homebrewed "Hand and a Half" fighting style that keys off versatile weapons, which makes it more attractive than baseline Versatile's "Deal 1 damage more on average and 2 more damage maximum".
All that said, of course, I do not treat them as -equal-. Only similar. Bludgeoning Weapons kinda suck in the 5-tier thing I put forward. They max out at d10 on Master level and are all Versatile. Meanwhile Piercing Weapons (Including things like Spears and Picks) are Finesse and cap at 1d12. And then you get into the question of Resistances, where only 6 creatures are specifically resistant to Slashing, 8 for Bludgeoning, and 10 for Piercing. Though it should also be noted that 2 are -immune- to slashing, so even the least-resisted weapon damage type has it's foibles.
YMMV, of course.
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