Yes I've found this to be the case as well, especially all the "wushu" weapons. No offense intended to wushu but the weapons being made for forms are junk IMO. I would assume though with all the wars and swords forged in China they had to have had great swords at one time. I just wanted to understand what was great about them, how they where forged and why.
Paul Chen seems to make some fair swords. I have a Jian I use for my schools Taiji sword, and though it's not a traditional Taiji sword it serves nicely for forms. For reference I say not a traditional taiji sword, because as I understand it the swords used in taiji are shorter then my 32" jian, and the tip is not as narrow. Regardless, I'm happy with my Paul Chen.
http://www.japaneseswords4samurai.com/files/image/products/main/tai2%283%29.jpg
I also found a company that Scott Rodell mentioned called Huanuo. They are suppose to be high quality Chinese blades. I have my eye on the Liuye Dao
[video=youtube_share;lIi2SjG4kgo]http://youtu.be/lIi2SjG4kgo[/video]
I also hear promising reviews about Zheng wu. However I also have read some complain that there swords are over priced, and that they don't need to fold the steal so many times.
http://www.zhengwusword.com/zw/dao.htm
The wushu stuff is junk. It's fact, not just your opinion.
These things are blocked here at work, I'll need to look at them later.
Regarding traditional swords and Paul Chen and whether or not a sword is proper or traditional for Taiji or anything else, here are my thoughts.
Weaponry is a personal thing, and once you have been well trained, you will decide for yourself what works best with regard to size, dimensions, balance, etc. There are definitely general guidelines about what works, based on knowledge gained over many generations. But the specifics can vary a surprising amount. I did some reading about European swords, and was struck by how much variance there was from one piece to another, based on measurements and comparisons of surviving Midieval era weapons. What that tells me is, there is no such thing as a "typical" or "standard" weapon. Well, I won't say that as an absolute, but I believe there was a lot of room for variation on the theme, depending on the preferences of the individual and the skills of the smith. So I don't get too hung up over what is a "proper" sword for this or that. I think what is a better way of looking at it is, what is a proper sword for you. In terms of size, weight, balance, specific shape, it needs to be something you are comfortable with. And the item that you select may not be the same item that I would select.
Also keep in mind that weapon designs often were a reflection of the technology of the day. The intended result was to make a highly functional and durable weapon. That is really all that matters, in the end. Anything else is of second importance. So smiths used the best technology of their era to make such a piece. As technology changes, it makes sense to update the process with those improvements and advancements, and that may change the end product. It's no longer consistent with "traditional", or rather, what would have been the best technology of a past era. But it could actually be better, based on advancements in technology.
As an example: folding a blade was done to improve the quality of the steel. Where high quality steel was not available, people took steel pieces of various quality and folded them together, resulting in something that was better than the individual pieces. There was a functional reason for doing the folding.
But today, modern foundries can produce specific types of steels with a very high level of quality control, that can produce some very fine blades. The process of folding the steel is no longer necessary if you have access to a high quality steel that gives you the properties needed in a good blade. In that case, folding is done purely for asthetics, and not to actually improve the steel.
So, I understand the interest in how traditional weaponry was made. It's something I have an interest in as well. but keep in mind, when the desired result is the best quality item possible, some modern technology may get you there better than some of the traditional methods.
} pieces of steels with different properties. 
