Why The Oni's Katana looks like that:
That's because it's a kodachi. This was used by samurai of feudal Japan, the time period Kazan is from. This is his sidearm, with his primary weapon being his kanabo, which were also used by samurai at the time to fight against people who wore armor, since a katana cannot penetrate armor.
You can see here that the samurai has both a kanabo and a kodachi.
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It's not that a katana could penetrate armour, it's more that it was designed to naturally slice through the gaps within the segmented plates of traditional Japanese armours. Especially since it was more long plates tied together, rather than a traditional European plate-mail/chainmail.
That being said, a kanabo would be absolutely brutal anyway. If someone could wield it effectively, that is. Any sort of plate would be severely dented, possibly restricting movement or even possibly breathing if hit with enough force. With the Oni's size, then I have ZERO doubts that he'd be able to swing it with enough force.
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Yee, I should have said "cannot penetrate armor reliably."
A katana isn't designed to be used against heavily armored opponents, since heavy armor didn't exist throughout most of Japan's history up until the more iconic samurai armor came about.
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