I presented this case a while ago with respect to Guns and Staffs. I believe the conditions are similar for Bow and Daggers.
Quote Originally Posted by VROOMIGoRealFast View Post
1) Is it just the Skill Damage increase compared to the Basic Attack increase that you feel isn't balanced?
Bows and Guns are single target weapons, hence the increase in basic attack damage should be a counter to the spread damage provided by Daggers and Staffs. At present the Skill damage from Daggers and Staffs are higher than Bows and Gun.

Quote Originally Posted by VROOMIGoRealFast View Post
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)
Not really, though the armor difference should not be very drastic that people don't even consider using a ranged weapon.

Quote Originally Posted by VROOMIGoRealFast View Post
3) Is this a PvP only thing or does the feeling exist in PvE as well?
My thoughts are based on PVE only, though the lack of armor does affect players in PVP.

The damage output for both weapons should be same. IMO only the stats for survivability (health/armor) should be affected based on range.