If I may interject, and compile what has allready been said by Face Eater and Unusualsuspect to clarify several issues.
Going by wording and implications, the wording in the Lathe Blade (weapon upgrade) entry in IH disputes the reasoning for separate Pen values, as it states, and I quote, "A Lathe-bladed weapon loses it Primitive quality. Increase the weapon's Damage by 2 and it's Penetration by +3.". Same goes for Mono in DH Core Rulebook which states "Mono waapons no longer count as Primitive and add +2 bonus to their Penetration." In the instance of two seperate Pen values for weapons with the Primitive quality, one being 0 and the other whatever is listed, upon losing the Primitive quality they would be left with Pen 0, and there would be no need to state that "something increases Penetration by X", as that "X" would always be the final Pen you'd end up with.
Now, please note that I am refering to separate Pen values here, not Pen values that count as 0, which would bring me to my next point.
While the sentance "The Penetration of weapons with the Primitive quality only applies to armour that also has the Primitive quality." does indeed imply that the Pen value of weapons with the Primitive quality is disregarded when used on non-Primitive armour, it states nothing to the fact that said Pen value is granted by the Primitive quality, only that it's mitigated by it. As such, it would, by all accounts remain unchanged once the weapon loses it's Primitive quality.
This is also consistant with the previously mentioned wording of weapon upgrades that remove a weapons Primitive quality and increase it's Penetration by a figure rather than saying it is a set figure. It might also be noteworthy to point out that the current errata ammends Man-Stopper Bullets in exactly way depicted here, stating that a weapon using them "…increases it's Penetration to 3", while not dealing with the Penetration increasement of the Mono and Lathe weapon upgrades at all.
Most importantly, regardless of what you might think of my interpretation of RAW, the current errata (3.0) postdates the first edition of IH.
Of course, if you think that this is unbalanced, you are free to run your game any way you like.
On a side note, I do think that Mono is somewhat underpriced, since, when comparing a Mono-Sword with a Chain Sword, Tearing and +2 Damage amount to 220 TG. For a someone not a Moritat. I ended up running my games with Mono costing 100+, and the Moritats starting with a regular sword.
Now, to answer the OP, that would depend on your character style. If strictly going by numbers, I'd go for a Lathe Greatweapon, since with two talents you'd be looking at three 2d10+2+S, Pen 5 attacks, while the alternative is four talents and four 1d10+3+S, Pen 4 attacks at -10 WS. Or something in that vicinity.
Still, impersonating a noble with a 5 foot sword strapped to your back might be a tad hard to pull off 