The base damage and health will be exceeded by others, but at high levels you'll have enchanted it to make the base damage insignificant (and to kill ghosts and wraiths), and have enough armorer skill to keep it repaired at all times. With Azura's star, and including Soul Trap in the weapon's enchantments, you should be able to maintain a good charge of your favorite damage variety (I like to use Damage Health, as you get enemies with elemental resistances) and still be using it when you max out, just as a delivery mechanism for the magical effect.
As I said: Best with a battlemage-ish character. The magics you use will make up for the low dmg and can take advantage of the low weight. The only problem with it is that sometimes you wont have an oppertunity to recharge, and it becomes useless. To most warrior build toons it wont do enough dmg to be worth it on higher lvls.
Edit: I'm not flaming, just fleshing out my former statement.