Ultra noob melee question
 

So I am playing my first melee ever, and am level 7 (ooohhh, aaaahhhh).

Until yesterday, I was using a Fine Steel Two-Handed Sword (43/12), and was hitting for a max of 20 (my str is 120-ish).

I just upgraded to a Blackened Iron Bastard Sword (47/20), and am still hitting for a max of 20.

So, what does the higher damage of the BIBS buy me? Is it that I will hit for max more often? Or is something that will benefit me only later after I get more STR or more levels? Or...?

Okay, that was more than one question. :D

You have to level up to 10 to break your first damage cap I think.
Then another at 20. After level 20, STR seems to increase your damage cap on P1999.

If you have the choice, and I'm assuming you do by having weapons like that at your level, the better thing to do is get medium damage/quick delay weapons until those damage caps at 10 and 20 are lifted. You get damage bonuses once you get into the 30s that will raise your max damage, as well.

Use a 1h if you have one that will hit the dmg cap.

You are capping out.
IIRC on live there were 2 levels of the DMG cap. The second damage cap is removed at level 20(?).

Sweet, thanks guys. I think I knew about the damage cap once upon a time - it's coming back to me now. Yeah, I'll go for a faster weapon until I hit 10 at least.

Yeah, the bibs cost me 125pp, so I am somewhat twinked - but not over the top. That and my 5ac/55hp rings are my most (and only) uber-ish items.

Yes - specifically, the damage cap is 20 until level 10, then it is 40 until level 20.

So ideally, use the best weapon you can find ratio-wise that has 10 damage or under until level 10, then the best weapon that has 20 damage or lower until you hit level 20.

Adramelk has provided the most correct answer so far.

Players have the first damage cap from 1-9. Upon reaching 10, the damage cap is raised to the 2nd level (40-47 dmg), and lasts through the levels 10-19. Once you reach level 20 you will start to receive damage bonuses to your weapon, and at level 30 your stats will fully determine your damage done.

Clarification (and better wording) appreciated.

My knowledge is a decade old and I haven't played a melee here yet. :)

Pretty sure I was spot on. And my damage bonuses started at level 28.