Actually, this is a pretty good 2hs weapon. In many situations, Vex Thal for example, mobs are corner tanked or wall tanked, making archery DPS significantly less or nonexistant. We also have to melee when mobs are mezzed (SSRA, VT, Seru) or get the wrath of our friendly chanters. Using 1 handed weapons we generate a lot more aggro than 2h.
Also, the weapons that are better than this cost a lot of DKP (Seru, Emperor, HoH Warder's Ornate, etc) or PP (Windblade). Being able to get this for free is pretty damn nice.
No archer should melee whenever archery can be used, but there are plenty of times where melee is necessary and 2h DPS > 1h DPS.