The increased basic attack damage, as some mentioned, was meant to be the counter to lower skill damage and armor. Previously bows were the king and no one used daggers unless they had broken procs. It sounds like you're saying the increased skill damage is greater than the increase in basic attack damage. We can look at this and keep it in mind, just want to verify a few things.

1) Is it just the Skill Damage increase compared to the Basic Attack increase that you feel isn't balanced?
2) Does the lack of armor contribute to this feeling of daggers being the best? (The armor is a counter to the lack of range, but maybe this needs to be tuned down some)
3) Is this a PvP only thing or does the feeling exist in PvE as well?