I will initially release it for story mode and then will try to adapt to GM. As for NPCs - I'm not sure whether AI would be able to properly use skills with so much scripting involved.
As for balancing - I want it balanced but seeing how everyone and everything becomes OP by the end of the game (mainly due to insane scaling and item bonuses) it may be a challenge. But I do want this class to be balanced.
As for Katanas... oh... that's a dream. I want them soooo bad myself. But alas this is seriously beyond my skillset =( Good news is that if other modders create mods with new 2h swords and name item templates properly then they will be automatically supported by Blade Master mod.