Originally posted by jonnin:

Axes are a grey area here, esp early game, but I stand by lumping them in the tools.

They lack the regular attack cleave of a sword, and swing a little slower, but that new power attack they have has proven to be unusually effective at hitting mobs below the expected plane of combat since the overhead swing finishes a little below where your feet are, so it can help when your opponent is downhill from you.

Plus, you'll likely almost always be carrying an axe for woodcutting, so if you want to travel light, you can run with that if you're not too concerned about minmaxing damage types and DPS.