Dirt cheap tradeable Lammys and Jade Maces outperform this weapon. For the level necessary to survive in Akheva, this item is basically useless unless you are in desperate need of MR.
I suspect that folks will login low level twinks to loot it or that there will be mid to low level beggars hanging out at the zone, like they do in ME for the club, waiting to hear:
Well, items like this are going to make for some pretty full backpacks I can see. The ratio is no great thing but it's decent against not overly magic resistant critters. The real kicker though is the rather nice 50HP and the ok 10 SvM tossed in with a few stats. Hmm, still no perfect item for the level to obtain it but it wouldn't go to the destroy button either.