"If the wearer makes a melee attack while the field is active, the wearer counts as being armed with a Melee weapon with +2 damage and Stun Damage quality."

So this counts as a weapon, but if a person would use let's say a Combat Knife while the field is active, does those 2 adds up or something....do you have to chose between one or the other?

I'd assume it's one or the other.

Then there is the part where a Charge Suits says it is "Brawl" while this I.F.D. says it is "Melee" .....feels to me like these 2 types of attacks are very similar....shouldn't this be Brawl?!

Based on what you posted (my copy of DoH is in the mail), I would grant the higher damage, lower crit, and add the stun quality to whatever weapon you use. It’s 9,500, so the juice had better be worth the squeeze.