The RAW gives a trapping of an IoP that can only be used by those with a pure heart (and linked to the Champion of God Template) that is fueled by focusing the Faith of billions. That's the ACaEBG I'm taking about. Dismissing all of those linked thing is what breaks the power.
Nope!
What breaks the power is using it on something with a big weapon rating. An IoP powered by massive Faith can totally have a big Weapon rating, especially if it's picked up by something with Strength. (Given that Susan uses a Sword at one point, this is obviously possible.)
OGL argument sounds silly to me.
Tedronai's being needlessly rude about how IoPs work, but he's right. Item Of Power is a Power that attaches to other Powers. In order for an Item Of Power to give ACaEBG, ACaEBG has to be a Power.
Your approach would be sensible, but it's not compatible with the rules we have.
Unfortunately, as aforesaid, the Sword still has problems even if you don't put ACaEBG anywhere else.