Not true.
A Bound sword with Mystic Binding deals 14 damage, the same as an unmodified Daedric sword. However, bound weaponry in general also count for relevant perks for one-handed and archery trees. Finally, increasing your relevant weapon skill also has an impact on weapon damage (approxamately 1% per two ranks.) This includes bound weaponry. So while a weapon improved via smithing will always be better once you can make high-class weaponry, a bound weapon will always be effective... just not the best.
Remeber that I said a Bound Sword should have 14 damage? Yours has 19, proving that you have at least 10 ranks in One-Handed.
This makes me feel a bit better, though normally i only spend one perk at max in the arms-man perk because its more effective for me to rely on my smithing, since with that i can improve heavy armor, light armor, archery, 1H, and 2H without spending 5 points in each.
Well i spent another point in armsman and gained only 2 more Damage

... Looks like ill have to bite the bullet on this then. thanks!