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Malachi, that is why mithral should be a flat cost. Alas, we are slaves to legacy. :)
- Gauss
I would much rather they bite the bullet and do the flat cost thing. : (
The price for items of special material has never been about weight for the weapons/armour actually used by adventurers. It's always been priced based on how useful it is. This is illustrated by the cost for Daern's Instant Fortress being so cheap considering the sheer volume of adamantine in its construction.
The only reason why we have this problem with mithral weapons is because, while mithral armour price is based on usefulness, there was no category for mithral weapons! They were just lumped in with 'other items' as there was no real advantage to mithral weapons before PF added the ability to bypass DR/silver.

Xaratherus |

Xaratherus, the problem with your idea is that you will have a -2 attack penalty due to using an incorrectly sized weapon. Lead Blades won't fix that since it does not change the size of the weapon. It changes the Base Damage *as if* one size larger.
- Gauss
I was primarily being facetious. :P