The sword is targetable because, at the end of the game, you can choose a path that will allow you to have the weapon. Because it is an item that you can use, it shows up as targetable when someone else is wielding it. You will find that Kraokendon (the stout king's hammer) is targetable when he is wielding it. But you have to kill him in order to wield the hammer.
Saz, I really like that signature. Very Kewl.
Knarfling
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Only two of my personalites have delusions, but one of them is paranoid and the other is out to get him.