While I can see the honor in switching to unarmed combat cause your opponent is fighting you with his fists, his opponent didn’t drop it willingly as much as fumbled. I also get that he has the protagonist plot armor that the game world gives him, but YOU DON’T DISCARD YOUR WEAPON BECAUSE YOUR ENEMY ACCIDENTALLY DROPS HIS, ESPECIALLY NOT MID FUCKING SWING!
There’s not cheating or fighting unfair, and then there’s actual retardation due to a one dimensional personality. If it was actually him being good he could have instead stopped his swing and waited until the other dude picked his sword back up.