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I've noticed all my sergaents have chainswords, because that's how the pictures are and my boxed set comes, but this got me to thinking, doesn't this extremely limit their effectiveness? I mean a chainsword is a basic close combat weapon the same as the space marine knife as far as stats go from what I understand.

So what is the advantage, you are replacing a piece of invisible wargear with an exactly same stat one that is visible. However you're losing your best piece of gear on a marine, the boltgun. You are losing 12 inches off your range, and cannot rapid fire, so what is t he point? Is it just for looks, and I should just take some boltgun guys as sergaents?

It's a CCW, so with the bolt pistol, your Sergeant will have +1 Attack, bringing you to 3 base. 4 if you charge.

With just a Bolter and Bolt Pistol, your sergeant will only have 2 attacks base.

Space Marines don't actually have CCWs on the tabletop, even though they come with array of knives.