How about them swords?

[Voralphion]

Why, and Where was Narsil really created?

Why? Narsil was created to be used as a weapon for fighting.
Where? I don't think it says exactly where it was created, but it was forged by Telchar in the first age, and Telchar was a dwarf of Nogrod so it was probably made there, another thought is that it could have been made in Doriath as it says that Thingol had many weapons made by the dwarves of Nogrod especially Telchar. It probably came out of the fall of Doriath with Elwing along with Thingol's sword (I can't remember its name) and was passed on to Elros and then made its way to Elendil, Isildur and eventually Aragon.
And about axes, many of the warriors in middle earth had axes, mostly dwarves, but also Hurin when he slew the seventy trolls and Tuor had an axe in Gondolin and used it to kill many in the fall of Gondolin.