The Sword of Heroes, as Dragonslicer is known, is certainly one of the least-feared Swords... one of those least feared by humans, that is. To face Dragonslicer in combat is simply to face a Sword of exceptional quality yet no real magic. Its magic is very specialized, but it has a power rarely seen elsewhere in the world of the Swords -- the ability to slice dragon scales (and other parts) as if they were the hide (and flesh) of a much lesser, non-magical reptile -- and this, in addition to its other "talent", makes the wielder a natural for slaying dragons, but gives no edge when fending off anything else.
These limitations to its usefulness keep Dragonslicer from being in great demand among the more power-hungry. If they can acquire it, so much the better, but what have kings and armies to fear from the Sword of Heroes?