In the Rogue Rebalancing Mod, they changed the short sword of backstabbing to be +5 to THACO (still +3 to damage) if handled by a thief and increased the backstab muliplier by 1 (if used by a thief). Personally, I think that's about right, especially given how difficult Mar Var is to defeat with that mod.
Personally, I think Lilarcor is fine. I believe you get it fairly early in the game and with it's immunity to charm and confusion, I actually gave it to Minsc for a good portion of the game instead of having him use the Sword of Chaos, until we got to much better weapons. Of course, the chance of having an opponent go berserk seems to fit (I'd call that keeping the sword even because making an opponent go berserk could be bad if it's a tank).
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