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http://amalur.wikia.com/wiki/Blacksmithing_Secrets Read that. Reset your stats from a fateweaver to get full Blacksmithing and Sagecrafting until you can make epic gems, then you can make some really messed up items (stat wise)
http://steamcommunity.com/sharedfiles/filedetails/?id=511527566 That's the HP my full Might character has, some of the parts are gold gained as well so I traded some stats for that. (I got one sword with lots of damage, namely 272 and 45% total damage and another one for 60% total HP and 5% damage)
Tl;dr: I didn't believe it at first either, but making your stuff with Blacksmithing with the way in the link, is way better.
Other that chakrams, I'd say sceptres (though I've never really found them useful) or bows, which eventually can one-shot a lot of stuff at distance.
Not really, I got away with almosy exclusively using a Greatsword until the last boss. (After 50% of the game I stopped using the hammer that I was using every blue moon.)
Greatswords are nice for crowd control, but so, if not not better are chakrams
Greatswods hit hard, but so does a giant hammer.
Longswords are jack of all trades. A bit boring in the long run.
The staff is more a magic shotgun and crowd control for mages (but a great one there).