Exactly! Here's how this will go down for my Shaman...

Blood Elves: Our most sacred blade has been reforged and chosen you as its master! If only we had this great honour!

Me: Uhh... this is awkward, but I don't even know which end of this thing to hold. Never quite got the hang of swords. Do you have something a little more... mace-y?

/entire Blood Elf nation simultaneous facepalm

I assumed it's like you reforge it not as a sword but as something else. turning in for the quest reward just says what you chose to reforge it into

Everyone who does the quest reforges the sword, but if you can't use swords the blade goes to the Sunreavers/Silver Covenant and they give you something... as good!

"Everyone who does the quest reforges the sword, but if you can't use swords the blade goes to the Sunreavers/Silver Covenant and they give you something... as good!"

Isn't that just simply convenient? ; )

I'd say it's more like this.

You walk up to them, hand them the sword, and they go, "Oh thanks for this awesome sword. We'll give this to someone, I'm sure. As thanks, see that box in the corner? No, not that one, the one below it. Looks like it's been kicked around a few times? Yeah that one. Move it. Now see that other one in the back? Looks like it's not seen the light of day in years? Yeah, that one. Open it up and take your pick. There's some really great maces in there, not sure why no one bothered to hand them out to anyone...Must have forgotten about that box when we were moving in."