The issue with druids isn't that they can't be effective in groups, imo. The issue is that the majority of groups strive to have 1) a cleric and 2) a shaman and/or an enchanter. And when that happens, the stuff that a druid does best for a group is already being done by someone else.
DPS? The real DPS cover it better than a druid does.
Healing? Cle+sham.
Buffs? Cle+sham, except for DS.
CC? Enchanter or a good puller covers it.
A druid can be a great asset to some groups. Charming animals can be great DPS in some situations while leveling. Druid can also fill in spots in less-than-ideal group compositions. But when people are getting their ideal cleric + tank + shaman/enchanter + DPS groups, there is really very little room for a druid there.
Like the others said, though, when you are a druid in a group, you just need to fill the gaps that aren't covered by your group already. Help heal when the cleric can't keep up, keep up hp/ac and regen and thorns in groups that don't have better already, handle the CC or help with the CC, deal some damage while also maintaining a high but less-than-full mana bar, etc.
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