Originally Posted by
Angelus_dead
That looks correct to me.
That is, the "Good" nature of flametouched iron isn't something physical from the metal itself, but the fact that this metal was blessed by a godlike force. Precisely duplicating the molecular structure isn't enough, because it's still "counterfeit".
From a game design view, it's also a good change, because it's wrong for one property to cover so many kinds of monsters. They should avoid creating things that are called "The only weapon you'll ever need".
However: for the sake of rules fidelity, they should probably rename Transmuting into "Metalline"
The other thing they should change: Allow randomly-generated weapons to have both Holy and Transmuting (such as by enabling one of those properties to appear as a suffix).