I have to go with the masses on this one though, and think the blade would look off balanced if held at the bottom of the handle.
I have created the off-hand blade .nif as well as the dual crossed blades .nif. I have also come up with a working (actually three that work together) script for the dual crossed blades on the back version (based on the original scripts I wrote for Nicos Scimitars, and the re-write of those scripts by Katalysis).
http://www.youtube.com/watch?v=CdZYp8i3UqI
I disabled the DMC Stylish mod from my game to test hand positioning using default animations, and found that there is a difference in the hand positions between the DMC Stylish animations, and the Oblivion default. I have set the position to work with the default which happens to also work (with slight clipping of the hand) using DMC stylish animations.
Next will be the creation of the two handed version.