This an excellent way of explaining why the cutlass, or any bladed weapon would still be used by a high-tech society/military. In addition to those reasons bladed weapons are good in the following situations (several of which others already pointed out):
- When stealth is needed in close quarters. A blade (especially from behind) is even quieter than a silenced pistol.
- When you run out of ammo.
- To carry on planets where rifles and pistols are banned.
- Very close combat such as fighting in a stateroom, airlock, small rooms, or even ships corridor where even using a pistol may be difficult.
- When hitting a spectator is not an option
- When making a statement (like Obi-Wan in Mos Eisely Cantina) is beneficial.
Besides, I think they are just darn cool, especially when you consider that at TL12 you have thest two beauties available:
- Improved Static Sword which ignores the first two points of armor and does 3d6+2 damage (Heft:1, Mass:2kg)
- Monofillament Sword which is described as having "a cutting edge just 1 molecule thick" and is "as sharp as any physical object". All armor is halved in value (rounded down) and it does 3d6 damage (Heft:-2, Mass:.75kg).
So even against someone in Ceramic Alloy Battle Dress (TL14, Protection 16) it could be effective with a good roll. And considering that most enemies will probably have armor with protection levels in the 5-12 range (Improved Cloth to Combat Armor) it could be very effective.
Then, at TL14 there is the
Arc-Field Sword which does 4d6+2 (Heft:0, Mass:2kg), which while it doesn't ignore armor, 4d6+2 is higher than most pistols.