Well it's the strongest sword in the generic game, but you can enchant more powerful ones (I myself have a dadreic longsword with 35+ frost damage enchantment)
...
I've just checked, and my most powerful weapon is a perfect amber warhammer (the strongest base damage in the game- Base 35 damage with 100 Blunt and 100 Strength) with a level 41 frost enchantment, so does 76 damage per hit. That thing pwns. However I've recently become a stealth charactor and as such carry a variety of daggers and rely on a destruction spell that does 250 damage :P
Sick. Are amber weapons part of the Shivering Isle expansion?