It's not that impractical, but pretty much all swords are for show nowadays. There's no practical justification to have a dedicated melee weapon, especially the ones that are most effective in combat.
I can't tell if the tang is welded on from this jpeged ass image, and I'm not sure if the pommel is permanently attached or if all handles even need to be attached before the pommel. I don't know how to tell stainless apart from other types of steel with something that's freshly forged like this. Also, correct me if I'm wrong, but aren't freshly forged blades generally not that sharp?
I was more commenting on how that general design isn't totally impractical, not that it's an amazing sword. It doesn't look finished and it doesn't have any obvious mall-ninja design flaws. There isn't anything so clearly wrong with it that I would write it off as cheap.
Can be from tempering, but it's usually hard to get the color that consistent. It could also be anodized or acid treated. There's a lot of different ways to change the color of steel.