I ALWAYS took the sword and gave up the shield. Having a low defense really hurts in the early game, but when you are lvl. 12 when you leave Destiny Islands, it kinda balances out. Just equip some Def. increasing Accesories) When you learn Cure, the lack of Defense matters little. Also, late in the game, the only magic you really use is Curaga since later enemies are generally magic-resistant. It may not suit you, but I beat Sephiroth at Lvl. 74 on Expert Mode with this combination.