If you don't have enchanting up to 100 with the dual effect perk, (and assuming you don't use the restoration exploit) then the Bow has the most powerful enchanment you can get against undead: 60 sun damage. Against other targets it has 20 sun damage. It is of Elven quality so it has pretty good base damage as well. Not as good as glass, ebony, daedric, or dragon, but still reasonably high. A great bow to take into a draugr infested ruin, not as great for Bandits or automotons.
Beyond the damage it does, it has a very nice effect. I like using it, even though it is not as good as my dual effect dragon bow, just because the sun damage explosion looks cool.
As to the Sunhallowed arrows, I didn't think they were that great. On a cloudy day it is hard to find the sun. Then the blasts didn't seem to do much damage (although the effect was neat looking). Plus, instead of shooting at the enemy, you got to take your eyes off them to aim at the sun. And, of course, they only work when you are outdoors. I was anticipating more so I had Gelebor make a bunch for me. But in actual practice I found they weren't that great.
Edit:
I think the bow would be very useful for a lower level charater that has both arcane enchanter and evlen smithing. (Smithing at least 60)
One thing though, it doesn't have many charges. OTOH, it only takes a common soul gem to fully recharge.