The only thing strength is used for is to lug loot and wear armor. You only need to focus on two stats here. Once your strength gets to where you can wear the armor you want and give you the carrying capacity you want, you never need to touch it again. With a speed zero dagger you will also attack just as fast as an unarmed guy with a weapon. I think is worth playing the Dagger Warrior over any other class.
Magic daggers are also pretty common to find.
Your initial xp should be spent pumping your dagger, melee, stamina and endurance. Again don't try and do magic till much later. Coordination helps your weapon and melee defense as well as those critical hits which are extra zesty if your using max power. Strength above 100 gives you 1pt of damage per 10 strength, coupled with the x3 for max power and then again x2 with a critical hit. You wont hit very fast, but when you do, your gonna carve stuff up.