Why does this item have a legend? Are there others like it?

This is a Unique Item. Unique items are items that have a unique model, name, and a piece of lore at the bottom of their item description. They also have more constrained affixes(though there is still some variation). A unique item is different from a legendary item, in that not all unique items are legendary, but all legendary items are unique, other than that, they are incredibly similar aside from the number of affixes.

For whatever reason, The Diablo 3 Item Database does not list these items, perhaps because they are intended to be an easter egg of some sort(one item, The Clipper, is a reference to Borderlands), or because they have not completed the database yet.

Information on this item from the unofficial item database, which erroneously lists it as legendary

The item mentioned above is a 'unique' item, but is only of magic rarity. It has some flavour text but there are many non-legendary items in the game that do. The flavour text is intended to aid immersion, and to provide you some back story on what that item means within the game world.

Here is a link to the Diablo 3 US forums with lists of other items of similar rarity with flavour text;

http://us.battle.net/d3/en/forum/topic/5151722071

Other examples;

• Griswold's Worn Edge
• Rakanishu's Blade
• Wirt's Original Leg
• The Clipper
• Spectrum

While these may not appear in the official Diablo 3 item database, it's worth noting that Rakanishu's Blade in particular is specifically required for one of the challenge achievements (Bashanishu).