You went out of your way to make a really powerful sword... of course it's going to do a lot of damage.
That's not a powerful sword...
My Nord Hero weapons (sword, greatword, war axe, battle axe) are smithed up to ~350 (one-hand) and ~400 (two-hand).
All the weapons I had previously smithed up to ~1000 damage have been retired, heheh...
No fun.
Goes without saying you need Master difficulty!
I'm playing this run-through on the default Adept setting.
Newaryon, maybe you're not looking at it the right way...
Adept is great to begin.
At around Level 30 you need to switch to Expert to keep things interesting.
Then once your character is able to smith enchanted items and becomes very powerful, switch to Master.
Since a 'runthrough' can entail several hundred hours, why not use the difficulty slider as intended?
Adept difficulty enemies are like children! Inept children. The chances of you dying are very slim...
You recognize this right away when you change to Expert.