Cade is a fairly skilful duelist - he has contended with Krayt, beaten Nihl, beaten Talon, beaten Vul Isen, beaten a number of fodder Sith with minimal effort, fought Antares Draco roughly evenly, and one-shotted Sint Yoru. These are decent feats, but the only problem is that none of his opponents are particularly noteworthy duelists. Krayt has beaten Wyyrlok, so he is a decent fighter in his own right, but Wyrrlok has no feats with a blade. Krayt has also beaten four Imperial Knights (who are really just fodder with good accolades), but this may have been a showing of speed rather than skill. His only other noteworthy feat I can remember is fighting roughly evenly with Celeste Morne/Karness Muur, but even ANH Vader, a mere shadow of his former self, defeated Morne with ease. So really, Krayt isn't that impressive in a fight. Cade being his approximate equal is not bad, but certainly not on par with Kit beating multiple Magnaguards, forcing TCW Grievous back and holding the edge against him, and being one of the best Jedi swordsman in the Order. In fact, in Obi-Wan's opinion, Kit was one of the best swordsmen in all of Jedi history.
Similarly, Malak has only beaten Bastila, who really has no feats (she beat a featless Sith in a decently long duel). He has no other showings aside from hyperbole and other accolades. Corran Horn has contended with Mara Jade, beaten Yuuzhan Vong, including Shedao Shai, and has beaten Jensaari. Frankly, Corran is better than either Cade or Malak as a swordsman.
For power, I might be more willing to lean towards team 1 by a small margin, but there's too many factors for me to describe now (I just don't feel like it) and it isn't sufficient to afford them the victory. Kit is significantly faster than either of his opponents, and team 2 is just more skilled as well. They would win almost every time, if not every time.
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