I think having a mismatch this unbalanced is dumb. Having a sword has nothing to do with strength. I bet if you gave some average Joe a long sword and pit him against a man who has trained years to be strong Joe would have a pretty good chance of winning. Same goes for materia, only to a greater extent. Assuming this fight is not supposed to be an execution I don't see a problem in leveling the playing field a bit. That, plus the fact that it's a fake fight on an internet message board, so it should at least be somewhat interesting to think about.