Woah this got nice and heated.
As for counter-arguments on balance, here's my opinion:
While I am dissatisfied with the way archery is currently handled, and won't use it because it feels indistinguishable from magic to me, the balance issue, for me was never the core of the decision. It was in fact the lack of challenge that archery in ESO presents that is the let-down. In real-time combat MMOs, archery is always the most challenging avenue, and therefore often the most rewarding. You have to make sure you have ammo, you have to aim, lead and range targets. It's hard, but the balance usually comes, as someone else mentioned, that the damage output of a successful shot far outweighs the base potential damage of any other kind of attack (of course depending on bow quality and arrow quality as modifiers) but all things being equal bows become more powerful as they are more challenging to use. Also, there's nothing like the thrill of a well-placed shot downing your enemy.
That being said, you could essentially assign "ammo" to everything. The way you would do that is have melee weapons degrade as they are used, necessitating crafting supplies and repair kits to be maintained (prices or assemblage materials equivalent to that of arrows) and you make magic require reagents, essentially ammo for spells, which is a system I've always loved personally but is often way too hardcoe for most players.
Now I'm not saying that system would be appropriate for ESO, but that is one way to make things balanced, especially in a more sand-boxy, open-ended hardcoe type of game.