This is a newer version of the "smarter" Battle Maid, Betsy. And yes, that is a huge-assed Cloud Strife sword. And if you get her REALLY angry, she'll even do Omnislash on yo' ass!
And for those of you who don't get the FF7 references, don't worry - you're not alone. Just think of a scrawny lil' guy carrying a huge sword, and you'll have a general idea of what we're talking about.