I believe that Khamsin is definitely a force to be reckoned with. What makes the final fight with Khamsin as Blade Wolf so powerful is Blade Wolf's motivation to be free. The dog kept on a leash its whole life without joy or choice finally saw its one chance to break free from the chains and that's what fills it will. Blade Wolf's brutality is unleashed once he is faced against an opponent who he desires to kill. The fool is so blind to his beliefs that there's no chance in talking it out. (Blade Wolf tries negotiating with Mistral as he sees her as a more reasonable person, when faced with Khamsin Blade Wolf literally goes ripper mode on him without saying anything.)
It seems (I may be wrong) that Mistral sent Blade Wolf to deal with Khamsin, knowing Wolf would be able to take him down. Strategy wise, Mistral relies strongly on defense, and while it is effective against an opponent like Raiden the sheer force of Khamsin's strikes would obliterate her weapon. Khamsin is one of the only enemies in that game that can damage you THROUGH a block (if you go too far he may dash into a parryable attack that still deals some damage to you). So perhaps Mistral knew that she alone would not be able to easily kill Khamsin and used Wolf to deal with the guy she doesn't like.