Quoting Robert Hentschke,
If a sword costs say 3 metal and assorted other things to produce and I get nothing but "a sword" in the shop, then why should I have to pay outrageous sums to get the same sword for the sovereign?
If the shop sword was noticeable better, maybe, but even a branch, crudely chopped off a tree costs more than building an entire city. Hello?
If the city can produce troops with metal weapons then it should be able to produce the same items for your champions at the same cost.
I think the new weapon damage values are a step in the right direction, but currently the difference between the weapons is too small. Early weapons start with a damage of around 4 and late weapons have only a damage of around 12, but the armors still have the same defense and this makes weapons currently too weak.
The late weapons should have damage values of around 16 and special abilities like ignoring the enemies armor or reducing the enemies Combat Speed and the gildar cost of late weapons is too high (1440 gildar for a lord hammer).