I'm not sure I like the part about damage degradation, though, unless this becomes apparent at really long ranges. Not over 100 meters or so, where a Cycler, for instance, would suffer no bullet drop, and thus be 100% effective, but a Pulsar would only do like 75% damage.
I liked the idea of slower projectiles, though. Guess we'll work it out during beta.
I also hope this doesn't make the VS statistically Uber in close quarters, assuming their weapons are a lot easier to control without recoil.
All factions should have equal capabilities, only with different flavors of "equal".