The problem with a tri-sword halfling is that you don't usually use the potions till the boss fight. So that tri-sword is wasted inventory space most of the dungeon run. With an orc, you gain the boost throughout the dungeon.
Orc vs Human:
Human gains less bonus early on, but it increases exponentially at an even faster rate than orc. By level 10, you are probably getting at least 5 damage boost per conversion.
Orcs gain a bigger bonus early on, but with a higher conversion threshold, it isn't fast enough to keep up, even with the stacking. So if you convert 6 times in a dungeon, you only average 3 base damage per conversion (with your natural damage % boost it's about 4 damage)
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