My understanding is that Arrow damage adds to bow damage, and the total doesn't get the 2x multiplier most weapons get, so in a lot of ways its similar to adding 2.5 damage to a 2 hander in exchange for costing money. I'm pretty sure it gets multiplied out at higher levels just like the base bow damage through Trueshot, stationary double damage and the normal ATK/STR damage multiplier.
If you're DPSing with Trueshot on a raid mob, I believe its a 15% damage increase with an exquisite velium bow for an extra ~1000 damage over the 2 minute window, and the hundred plat is just a negligible raid expense. Outside of that, its doubtfully worth the cash.
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