Care to elaborate? Because it's a weapon famed for killing elves? Because the name's weird?

I know this is a really bad comparison and I shouldn't really use it but I just can't help but think a real life version of this weapon would be like a chemical bomb designed only to kill say Russians and on the side of it is a picture of those bigoted cartoons they used to do during the Cold War.   

No, that is the gross part.

Lol, yeah that's a pretty bad example. Though I see what you're getting at, a bomb doesn't have to personally engage in combat with its target. Someone with Wuuthrad has to go into battle to even use it. At that point, it's enchantment is actually kind of weak compared to any other non-discriminating damage enchantment. You may be cleaving elves left and right, but suddenly an Argonian steps up and the magic is gone.

The point of a face like that is to give the enemy something to think about it. It strikes fear, instills doubt, even encourages surrender. Not very different than warpaint or carrying the scalps/skulls of your enemy at your waist.

Where does it say that Ysgramor killed children?