Most answers are in the wiki archery link.
tl;dr:
- higher dex, higher archery skill, , better bow, better arrows, atk buffs and worn items = better damage
- ranged atk not displayed != melee atk displayed
- no damage bonus on range slot
- archery sucks, even after 55
- good for pulling, sometimes useful for soloing
It's fun to shoot an arrow or two while running back to the dragon or hairy blob after eating a fear, apart from that, meh.