If the sword's thing is that it takes away a person's "dignity," then what happens if the person its used on doesn't have any dignity in the first place? Like, they're wearing a chicken costume and speaking sugoi NNSG-style faux-Japanese desu~ while doing Tiktok dances and bragging about how famous they're totally going to become?
'Cause in that case, turning them into a little girl'd be a net positive on their DQ, (dignity quotient) right? So, are they immune to the sword? Do they just die? Do they somehow become even worse?