Re: Am I reading this wrong
 

Four die rolls have higher chance of critical hits and failure than three die rolls so when adjDX is five or less and you are immune to critical failure it is better to roll more dice.

Re: Am I reading this wrong
 

I'm kind of surprised that no one called out the obvious blunder, you can forge a fine throwing ax to be +1 to hit, because it's more balanced? But you can't fabricate an equally balanced throwing blade?

Re: Am I reading this wrong
 

One might reason that it's not very hard to balance a throwing knife (so there's no such thing as a "super-balanced" throwing knife that's materially more accurate, and that instead, knives/daggers not balanced for throwing might be at an extra penalty to throw them, instead.

If you wanted to allow finely-balanced throwing knives, maybe house-rule that a DX bonus on a knife only applies to throwing (and perhaps that the minimum penalty to throw it is -1 anyway, since balance probably doesn't matter at 1-hex range).