Early game gets you the club, then the dagger, then... nothing for weeks. Need to be about level 18 before taking on soldier goblins, which give you at best a level 5 sword. Next up from that is a lv10 scimitar, only gettable around level 36. There needs to be some place to buy a sword, or craft one or something. Killing rats with a dagger gets old fast.
Really, the idea of getting upgrades from drops is bad, because monsters will be using the better weapons. By the time you're 2x that mob's level, the drop is half your level too. And don't say fight in groups, because the monsters fight in groups too.
Anonymous
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You can buy a sword in the Kobold City. A weapon smith has them for 90 money.