Camate has revealed a proposed idea to remove the level correction:

Quote Originally Posted by Camate View Post
Remove level difference correction
By removing the level difference correction, it will be possible to reduce the amount of damage taken by increasing your defense.
This of course means that 1-handers like THF will no longer be nerfed by the 1.0 cap compared to the 1.25 cap of 2-handers, thus drawing our damage much closer to theirs.

If this goes ahead as well as other bonuses for 1-hand weapons as they proposed last week, THF will possibly be considered for end-game content! Added to our new 2-hour giving us the ability to steal a decent 2-hour like Mighty Strikes, THFs could see their DPS and WS numbers rocket!