The PnP explanation:
Masterwork Weapons
A masterwork weapon is a finely crafted version of a normal weapon. Wielding it provides a +1 enhancement bonus on attack rolls.
You can’t add the masterwork quality to a weapon after it is created; it must be crafted as a masterwork weapon (see the Craft skill). The masterwork quality adds 300 gp to the cost of a normal weapon (or 6 gp to the cost of a single unit of ammunition). Adding the masterwork quality to a double weapon costs twice the normal increase (+600 gp).
Masterwork ammunition is damaged (effectively destroyed) when used. The enhancement bonus of masterwork ammunition does not stack with any enhancement bonus of the projectile weapon firing it.
All magic weapons are automatically considered to be of masterwork quality. The enhancement bonus granted by the masterwork quality doesn’t stack with the enhancement bonus provided by the weapon’s magic.
Even though some types of armor and shields can be used as weapons, you can’t create a masterwork version of such an item that confers an enhancement bonus on attack rolls. Instead, masterwork armor and shields have lessened armor check penalties.
So just like my post toward the beginning of the conversation, I just could not understand all the hoopla over this suggestion ruining anything. That Masterwork Katana that your character has is identical in weight, damage output, weapon type etc etc. The only difference is that its crafter made it with a little more skill and luck, and represents the finest crafted example of a katana blade, and there for grants a +1 on the attack roll. That is it. That is why MW should be craftable. I have always imagined that a MW weapon looks identical, but if you held it just "felt right"; the balance of the blade just impeccable and therefore slightly more effective in combat.