The "only weapon" hehe... Almost all weapons have that feature. Starting from Flint Axe.



/ tangent
As for bow progression, there is one more side to this. In some cases (huntsman bow) that if you put the resouces that you'd spent on bow into arrows instead you get same damage increase for cheaper.

Alos when you start using later arrows (obsydian, neddle) finewood bow is actually still revelant. You sacrifice a little bit of damage compared to draug for much less stamina drain and you level up bows faster which over time will result in better damage anyways.