There are plenty of little flaws with the official builds, and Green Lantern is no exception. Kyle Rayner should definitely have Precise on his Create, for one thing.
I do like how they made Sinestro and Hal Jordan equals in hand to hand combat without their rings. One of my earliest exposures to GL comics was Hal's final battle on Oa before he became Parallax. Retcons have spoiled most of the original fun, but the idea of them both ditching their rings and fighting hand to hand, to the death, was awesome.
As for the question at hand, Murkglow's option A is what I endorse, and is how I think GL should function. Energy Sword, boxing glove, ACME atomizer, missile launcher, its all a function of his Blast powers (which should have Variable Descriptor).