Well, ONR is about to release an operational version of this. I can get the test version to anybody who wants to try it, but my test team have all agreed that it is an amazing improvement. ("My test team" ... I'm no programmer, and most of my "test team" are considered gods of the mod community, so the use of possessives here is greatly misplaced.)
Weapons are "deadlier", if you get hit totally without armor, yes. However, accuracy and speed adjustments, plus armor values that somewhat reflect the difficulty of cutting steel, tend to re-balance the effect.
It's no more frustrating than having to hit the guy 5 or 6 times with a huge sword, while he beats on you with a club and his friend shoots at you with arrows. Requires different tactics, yes. However, removing "weapon inflation" and letting people fight with normal-size weapons and still expect some results - it's well worth it.
And of course, the big bonus here is that I'm volunteering to do most of the work. All I need is the files, and a couple of volunteers to help me test it. If, after the project, the vote is against it - very little loss. Added bonus is that, since I just finished a version of this for ONR, I can probably make most of the changes in a few hours.
E-mail me the Python script, and I'll take a look at it.