9

I found Rakinishu's blade at an event in act II, does it have any purpose, or is it just a sort of Easter egg / in joke?

12

It is used for an achievement and in the other hand it is Easter egg.

Achievement: "Bashanishu - Hurt Bashiok using Rakanishu’s Blade."

Rakanishu's blade is a easter egg from diablo 2 monster Rakanishu.

Bashiok is a monster created after an blizzard employee Bashiok.

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2

There is no known use of it yet, other than earning the Bashinishu achievement.

For this achievement, simply hit Bashiok with Rakinishu's Blade.

There is a banner accent as a reward for this achievement.

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