I liked the samurai sword story, although I recall the second best sword being the one that you put in the stream, and it cuts everything. However, the smith who is truly a master can create a sword that, when you put it into the stream, cuts nothing, because everything diverts around it. The sword is one with the world, and leaves the world in balance.
Most people have no idea what sharp means, as long as they are capable of performing whatever task they want done. Most people seem to use dull knives, and don't know what sharp can really mean.
The story of Masamune and his "student" Muramasa (or at least the in the story, reality Muramasa lived much later then Masamune):
Story goes that Muramasa challenged Masamune, his teacher, to create the finer blade. After both swords were completed, the swords were hung edge against current in a stream nearby. Muramasa's sword known as Juuchi Yosamu, otherwise known as 10,000 Cold Nights, went first. Almost immediately a fish passed by, and was cut in half by the sword, next a leave perfectly cut, and even the very air that blew across.
Masamune's sword was next known as Yawarakai-Te (tender hands). Masamune waited patiently. A leave passed by, nothing. A swarm of fished went by, with no cuts. Marumasa of course immediately scoffed at Masumanes skill, however Masamune was quite content as he retrieved the blade from the stream.
Marumasa announced his victory, heckling Masamune about how his sword could not cut anything until a monk came over and said this:
"The first of the swords was by all accounts a fine sword, however it is a blood thirsty, evil blade, as it does not discriminate as to who or what it will cut. It may just as well be cutting down butterflies as severing heads. The second was by far the finer of the two, as it does not needlessly cut that which is innocent and undeserving."