As a big fan of bladed weapons, I must provide my insight.

Layout - You should put your introduction on top for 2 reasons. SEO and the fact you dont want to throw your products in their face like a fish monger. Use rich text and a short description of your products.
Sorry, but I have to disagree. The whole point of your site is to push products and make a sale. Like you said, you are getting traffic. The engines are finding you. There is nothing more important than pushing product because that is why you have the business.

Your layout, aside from a bit distracting, is very nice and very clean. I would suggest having your side borders a solid color. This draws the focus more towards the products and the navigation.

Also, Get rid of the flashing text throughout. It is distracting from the information on the page.

Also you might consider doing this

Pick up a new distributor and add more products.
Again, I would hesitate to do this. Having a niche where you can easily call yourself an expert is great for e-Commerce. Spreading yourself into these other categories is nice at the surface level, but it detracts from the core customer and forces you to lose credibility. Visitors will think "I am looking for knives/swords. Not Period Clothing or Medieval music."

Finally, I would restructure your navigation. You have nice information in the Top Nav, but it gets lost because you have too many other forms. No need to have the Affiliates, Authentication, or Shopping Cart sections in the left nav. They clutter it up and are rather useless (This is not info that the average visitor cares about. Install/Review analytics for verification).

I would combine the Top Nav and Left Nav (Product Index). I actually did not see the Top Nav until I was struggling to find a way back to Home - by the way, you should make your logo image a link to Home.

There are a lot of other ways to improve the layout and navigation of your site. But, for now, I'll end it here and we'll see what others say. PM if you get curious.

-BEC