[Mithadan]

I agree that Orcs have an appreciation of their own cleverness and their own works of their hands. Beauty is, of course, in the eye of the beholder. Of course there is the question of objective versus subjective beauty. Tolkien attempts to apply "objective" standards of beauty to Orcs and their works and thus they are interpreted (and presented) as ugly.

With regards to your form follows function argument that Orcish adornment of their weapons is essentially more honest than the Elven practice of making their works, including their weapons, beautiful (Objectively? Subjectively?), there are two principles in play. First is Tolkien's admiration of the hero, even if the hero is flawed). The Elves, generally being "heroic" (and no I do not wish to debate the morality of Feanor, etc.) posess mighty and wonderous weapons. The Orcs, as "villians" (Objectively? Subjectively?) bear hideous weapons that only an Orc or one of their ilk could admire.

Second, the Elves, as part of their nature, imbue a degree of their essence and world view into everything they make. A sword need not be beautiful, but it can be so it should be.