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No.  Those cards are not played, which involves putting the card in play to activate its special ability.  They are placed, which is not stopped by Decree.

Decree also does not stop good weapons, as placing weapons in territory is not 'playing' (see CWD rulings), and it only stops playing from hand, so those weapons still activate when placed in battle.

Why does Cov w Death stop good weapons from working in battle, yet DD does not?

Because Decree says opponent may not play good enhancements from hand unless an evil character is in battle.  The weapon isn't played from hand, so it still works.