My experience has been that against big tough stuff, archery has a bit tougher time scaling damage output. It's got fewer tools available to it to overcome high DR, etc. However, in situations against groups of enemies, it cranks out damage with the best of them, and with the advent of some of the feats in the Complete X series, you can get some excellent utility out of it, too, with things like ranged disarm.
My recommendation? Look around for magical dice to tack onto that d8, to help overcome some of the damage limitations.