If making a custom no-dachi, yeah id take the sword out. But Id change almost everything on the mech, so not sure how fair that is. Like, TC+pulse lasers with 2 hands for punching, light engine and supercharger, and a fancy armor. Totally different design at that point.
The Sword is good if you are putting bad troops in the design, as you dont have to worry about falling on a missed kick, but still have kick accuracy. With an Ace pilot, you are double punching even with no hand, cause the ace pilot skill means you hit regardless, so the sword is wasted. But, despite the XL, the no-dachi was kinda a 'reguar joe' mech with MRMs and a sword, as for whatever reason the initial fluff had Kurita issue MRMs to regular troops so when they missed, the ammo cost less... and the sword fits with the 'regular joe' theme. Here, stop kicking (and falling) Joe, use this cool sword instead (that wont incur more repair bills).