Yes, but the sword does become over-powered eventually and that's really the only thing that ruined the swordplay for me; I didn't use the shield unless it was for deflecting the Octorok's attacks or if I was blocking against some other enemy. The sword is really awesome to use, but Nintendo should have either given the enemies more health or refrain from making the sword become so powerful because they're way too easy later on. Our perspectives are different because we play/played the game a different way. I understand why you think the shield is too powerful, but I really didn't see it as the thing that ruined the swordplay just more of a thing to simplify it.
The sword becoming overpowered is a product of it gaining more strength, of forgery. If I had a basic broadsword of standard quality, but then got it forged at a smithy that delivers a much higher quality, you can best expect the sword to deal more damage. That's only natural. But as far as the shield goes, we can beat the game with only the basic Wooden Shield, no problems at all. I wouldn't say that is natural, because a shield bash would still have damage dealt to your shield and the fact that the shield is wooden makes it seem...for lack of better word, broken. The impact of my shield forcefully blocking your attack, coupled with the fact that my shield is wooden...I'd see a shattered shield after taking three direct blows.
So basically, with the shield bash we get:
I-Frames (invinicibilty frames, any professional gamer will understand this – however said iframes don't last very long)
Stun time on connect with enemy attack (for most enemies, some bosses are an exception)
Free hits after stun connection
NO damage dealt to the shield
The powered up sword damage isn't broken however, but I do agree with you that Nintendo should've taken steps to upgrade the enemies after a certain point in the story. Surely Ghirahim would've noticed that his army was particularly lacking after his first encounter with Link?