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Yeah, the Mind Weapon class feature is like the Sorcerer's "Power Source" feature in that it gives a few benefits:

1.  The Form Mind Weapon Power
2.  The choice of which mind weapon you manifess (Pure Blade, Weapon of Light, Split Soul)

The idea is that though this feature is that your soul energy (Wisdom or Charisma) fortifies your mind weapon so that you can make attacks using the physical Dexterity (or go purely mental with intelligence through a feat).  You're not doing anything differently while fighting, your soul weapons are just better than normal weapons for you due to the time and effort you have put in to honing them.

TWO is not completely useless on a Split Soul, as it can be used 1/turn rather than 1/round, but it doesn't stack on the same crit.  This was a power level issue, as the Soulknife has a few powers that make it easy to get critical hits.  Also, you could theroretically make a Pure Blade soulknife who takes the TWF options and then takes the feat in paragon, which requires much more feat investment but allows you to do psychic instead of force damage and also daze on a critical hit.  It's not quite as good out of the gate at TWF but it's an option.

The mechanical heart of the build is getting free MBAs with the off-hand weapon, but most are set up in such a way to be more accuracy boosters than pure damage boosters.  I think they're comperable to the other soulknife powers when you take into account the smaller [w].  They do get access to true/better multiattacks before the generic soulknife does.Feat support and paragon path(s) will also be forthcoming after I'm through with the powers.

Eh, I though Soulforged Ascendant was a cool concept: becoming an all powerful sentient artifact weapon seems cool to me.  I think I put somewhere that you can still reform your body out of soulsteel if you desire when you have no underlings to weild you, but maybe that didn't make it to the final version. 

I don't think it's really that different from how Ki Foci work normally.  It certainly wouldn't break anything but I don't really see the point as you would gain no real benefit to doing so and the flavor difference is subtle. 

PP coming with feats in part 3.