| Smaller weapons have a few things going for them...|
Weapon stats have diminishing returns to counteract the %-based increase that using rare metals provides. Taking a weapon from good to very good slice results in a larger damage increase than going from severe to very severe. This also helps prevent run-away damage bonuses...
So from this I can say that while a smaller weapon may increase fewer points, those points are weighed more heavily than a larger weapon with more stats to begin with.
Weapon stats in 3.0 were allocated based on calculated DPS. Smaller weapons attack faster when averaged over a randomized sample of ATTACKs. Likewise they have a proportional amount of stats reduced.
Critter armor is half-or-less than what players wear. So lighter weapons can often have an advantage. At some point I'd like to add a "protection pierce" modifier to light weapons to help out against player armor. It is the flat damage reduction from protection (especially when adding in layered barriers) that makes them poorer choices for PvP.