Melee gunslash has a niche, ranged gunslash has a niche, and it still has a third niche as PP recovery on tech classes. Gunslash is in a pretty good spot IMO.
You can also leverage Double Saber's on-hit PP gain to compensate for the PP compensation. And you don't have to worry about having to jump like with Knuckle gear. Only real problem is that it matches BHS when you perfectly hit the JA window; if you're going later in the JA window you can actually go down to about half the DPS.
I'll have to consider it for something like breaking Ex/Quartz's face, kneecapping Zesh, etc.
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