During the cutscene/cinematic in which you interact with the Elven Fanatic, she is carrying a greatsword along the same design as Binky's Comfort, but when you get the sword from her corpse, it bears a resemblance to a Darkspawn Greatsword.
The +10% physical damage perk not only effectively boosts the blade's own basic attack damage beyond what is stated, it also applies to talents like Mighty Blow. Under the right circumstances this gives talents far more damage than can be inflicted with a weapon of comparable base damage plus an elemental weapon rune, e.g. Oath-Breaker. However, when factoring how long the two weapons will be inflicting basic hits after each unleashes the talent and waits for it to cool down, exploiting enemy weaknesses with a weapon rune closes the gap in damage.