Drac, all of the suggestions you have made are perfectly well placed, and exactly the circumstances I would have thought. The problem of theatrical weapons has always presented a complete conundrum in identifying these anomalies, and more often than not, this category turns out correct.
As you note, the fraternal groups knew better than to carry sharpened weapons, these guys especially in earlier times were inclined to get feisty (just as you noted) and 'demon' rum was not a good idea with sharp items.
(As always I recall my 'tulwar' incident, a few nightcaps and taking a swing with this playfully, forgetting about my ceiling fan).
If this was intended as a utility item (i.e.machete or like tool) it would not have a cross guard. This suggests it was intended to appear to be an old sword.
My guess would be an amateur production of theatrical character, and at some point later, someone sharpened it for some actual use.
It definitely has age, and in times of strife, ersatz weapons were of virtually any character imaginable. Most interesting item.
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