Spears - More damage.
Swords - ???
Swords likely lose out a little in survivability and damage, but this is nothing new to characters. He was already losing to glitching Kais. Some weapons, like cestus, have been pretty bad from the start and still are to this day. Swords are still pretty good, they're just gaining competition and are now probably in the upper middle rather than near the top.
So no, it's not balanced and it's never going to be balanced. But Spear Lanns still have the best DPS potential, more than glitched Kai being that he has Fury Infusion and can actually utilize attack speed. They're not for everyone and if you want to be at your best but don't want to play a lot (or spend money), you're probably better off with Vella or Kai. Not by much though, it's not necessarily worth remaking your character over.
The way Vella is now, she's essentially the replacement for Sword Lann, and can keep up with Spears as well. Call it selfish/jealousy, but she's everything a Sword Lann should've been, except for being female. And she's getting a second weapon as well, that isn't Spears.
This just reminds me terribly of MapleStory, with the new classes that constantly overshadow the original ones by a large margin. True, it's good to have variety, but why bother with variety when it means having a superior option that makes everything else worthless?
I'd delude myself into thinking this could mean a revamp for Lann, but more male characters just seems like the realistic option.