We all made errors the first time through, Marmot, so welcome to the club
Yeah, your party members are going to lag through the rest of the game, though lots of practice can help build up skills, especially when they're low. Many players using Lords have commented on how well the stiletto works in the off hand for dual weapons. That may not apply to you, if the skills (dagger and dual) are very low, but you can always try.
However, if your group managed Nessie at such a low level, you have no need to feel disgusted with your characters. They are actually doing quite well. Just go on with them, and then in the next game, apply what you've learned and you'll do much better.
Nightowl2