To answer your question, swords are good because they have a lot of reach and now with the minimum range script set to strict, they have the advantage of being able to cut with the full length of the weapon unlike axes. Axes on the other hand have the advantage of taking down shields very effectively and of being very lethal (if you get a clean strike) - unfortunately the axe stats suffer from imbalances that make the longer axes less versatile in comparison to the shorter, faster, and sometimes more damaging axes that now also have the advantage over the longer axes that they don't hit with the haft as often.
If I'm lightly armoured, I tend to prefer short axes. If I'm in chain mail, I like to have a sword because of the slow movement (you get more range to work with, which is crucial when you can't adjust your distance from your enemies as easily).