Is DPS more important than Damage?

[FluffNStuff]

Skill damage is calculated based on a few factors: skill ranks, primary attribute (Int for elves, Dex for birds, Str for bears), equipped weapon damage (not DPS, but raw damage), and I think one other thing I'm blanking on. A higher damage weapon will produce more skill damage than a lower damage weapon, even if the DPS of the two are the same.

I have heard rumor that there may be a few weapons that increase skill damage well beyond what the weapon damage would indicate, but I haven't seen it in action myself, and they are the exception, not the rule.

The rumors are true, but unfortunately they increase skill damage well BELOW what the weapon damage would indicate. These are primarily two hand warrior weapons above level 35.