Does Griswold's Worn Edge have special use?

The ingredients for the Herding Staff and the Herding Staff itself all have flavour text and a specific purpose. Rakanishu's blade is a blade gained from the Shrine of Rakanishu event in the Dahlgur Oasis and is used for the achievement Bashanishu for which you must hurt Bashiok using Rakanishu's Blade.

Is there any special purpose to Griswold's Worn Edge which can be found in the Old Ruins in Griswold's smithy or is it simply a reference to Griswold the blacksmith from Diablo?

Solution 1:

There are three types of items with flavor text:

Legendaries and other Uniques, "Special" items like Herding Staff components, and Easter egg items.

In your case you have an "easter egg" item similar to this:

is an easter egg reference to the Borderlands boss Nine-Toes, who drops the gun "The Clipper"