Heres some things I scienced out:
Smaller contact area is better armor penetration, but lower damage on low armor creatures.
[ITEM_WEAPON:ITEM_WEAPON_BEAR_SPEAR]
[NAME:bear spear:bear spears]
[SIZE:450]
[SKILL:SPEAR]
[TWO_HANDED:52500]
[MINIMUM_SIZE:32500]
[CAN_STONE]
[MATERIAL_SIZE:3]
[ATTACK:EDGE:40:12000:stab:stabs:NO_SUB:1250]
[ATTACK:BLUNT:20:0:stab:stabs:buttspike:1250]
[ATTACK:BLUNT:400:0:bash:bashes:shaft:1250]
[ITEM_WEAPON:ITEM_WEAPON_AWL_PIKE]
[NAME:awl pike:awl pikes]
[SIZE:450]
[SKILL:SPEAR]
[TWO_HANDED:52500]
[MINIMUM_SIZE:32500]
[MATERIAL_SIZE:3]
[ATTACK:EDGE:5:27000:stab:stabs:NO_SUB:1750]
[ATTACK:BLUNT:20:0:stab:stabs:buttspike:1250]
[ATTACK:BLUNT:400:0:bash:bashes:shaft:1250]
First two teams of 80 naked humans, one with bear spears (broad headed spear) one with awl pikes (very thin spearhead). Bear spears won easily.
Next was with armor, easily won by awl pikes.
Love it when this sort of mechanic actualy works.
The second number pretty much seems to upper limit of edged damage done, havnt expirimented with it as much. Blunt damage unaffected, a weapon with 0 penetration damage becomes a blunt weapon (Useful for weapons that have both edged and blunt attacks; edged attacks are highly favoured by the AI). Very low penetration depth adds some bloodyness and stuckin effect but still funtions very much like a blunt weapon.
[ITEM_WEAPON:ITEM_WEAPON_POLEHAMMER]
[NAME:polehammer:polehammers]
[SIZE:1250]
[SKILL:PIKE]
[TWO_HANDED:97500]
[MINIMUM_SIZE:57500]
[MATERIAL_SIZE:4]
[ATTACK:EDGE:50:0:bash:bashes:NO_SUB:3500]
[ATTACK:EDGE:10:18000:stab:stabs:NO_SUB:2250]
[ATTACK:BLUNT:20:0:stab:stabs:buttspike:1250]
[ATTACK:BLUNT:400:0:bash:bashes:shaft:1250]
[ITEM_WEAPON:ITEM_WEAPON_PRONGED_POLEHAMMER]
[NAME:pronged polehammer:pronged polehammers]
[SIZE:1250]
[SKILL:PIKE]
[TWO_HANDED:97500]
[MINIMUM_SIZE:57500]
[MATERIAL_SIZE:4]
[ATTACK:EDGE:10:500:bash:bashes:NO_SUB:3500]
[ATTACK:EDGE:10:18000:stab:stabs:NO_SUB:2250]
[ATTACK:BLUNT:20:0:stab:stabs:buttspike:1250]
[ATTACK:BLUNT:400:0:bash:bashes:shaft:1250]
Velocity and also size are good for balancing out weapon damage, higher is mostly more damage. Not sure about how attack duration is affected. Size also sets weapon value.
You can force twohanded use by upping the twohanded number above human size (or whatever else you want to use them for). Note this only affect fortress mode dwarves, advanturers and worldgen characters do not care and still keep using shields with two-handed swords (somewhat dated information I will admit). Using to pike skill can prevent this.