Arc Blade is so underpowered in PvE. It has limited usage from a utility standpoint, such that you can use it for quick revives and beating the VoG platform puzzle in style... but its damage output is severely curtailed by the fact that getting close enough to actually hit mobs at the Raid/Nightfall level will almost certainly end poorly for you.
This problem could be solved simply by [b]drastically increasing the amount of Damage Reduction[/b] Arc Blade grants. That way you can still soak up the hits you'll inevitably take while in melee range.
[u][b]Make sure you apply this change both in PvE where it actually [i]is[/i] needed, and in PvP where it most certainly is not.[/b] [/u]
Because that is your modus operandi, and it's clearly being received very well.
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Yeah it's pretty bad in pve.