I'm pretty sure 2/2 non-elite H Regail's with a spirit gem is better.
I used your setup on the mace and mastery -> spirit on the dagger.
e: Nevermind I misread, but still, 1/2 is already arguably better.
Sure, the 2/2 dagger is better. However, there are two factors to consider.
1. Taking the dagger would force me to use 1500 VP to upgrade it (or at least 750) before it is even better. This probably does not make sense given that the bosses that drop 509 Sha Touched weapons (Lei Shi and Shek'zeer) are on farm, and I am using tokens on them weekly. Using VP to upgrade an intermediate weapon (because I would still later need to upgrade a Sha weapon) would delay the process of upgrading trinkets, etc.
2. It isn't as if the weapons are being sharded; some people still have 496 weapons, we have trials, etc and I'd rather just let them have it.
3. That dagger is at best 4th best in slot.
BiS - Shek'zeer mace
2nd BiS - Lei Shi staff
3rd BiS - Amber Shaper mace
4th BiS - Protectors dagger
5th BiS - Heroic Will mace
I'm aware that it is better, but it's only a marginal upgrade and just not that overly desirable of an item.