I think the real point of this spell is to use to pull undead. It has a reasonable range, and does far more damage than a pally will ever do with an arrow, even if you have a mage along that can give you a magical arrow that will do any damage at all.
I use this as a pull, and when a mob turns to flee, it's also a nice way to get the mob down to that 10% health level where your Finishing Blow AA can kick in. I agree that using it during a fight is pointless, but it's a great way to start and finish a fight.