Wow, finally I have the privilege of witnessing a coherent explanation for how TWF came into being. I had always worried that it secretly made sense as a game rule, but just wouldn't tell me about it. As an attempt to keep 2E fiction-compatible and later to keep 3E 2E-compatible, it comes up as a big "oh."
I'd straight dump it, without combat styles, although that raises compatibility issues for 3.5E... Ideally, I think the Ranger's base schtick should be favored enemies and terrain, at every odd level... Take a +1 versus a favored enemy, or a +1 in a favored terrain (although terrain is, admittedly, tougher to define).
Of course, fleshing out the class requires a few extra tricks: Free track is a must, and the Barbarian's Fast Movement would be a good fit. Nothing else big, as their skill selection and BAB help already. Maybe even a good Reflex save depending where they fall balance-wise.
Presto! A good, versatile Ranger. Fights as well as a non-raging Barbarian when he's not in good circumstances, once he hits his favorable circumstances he starts keeping up with/exceeding the Fighter (the fact that the fighter can't do this all the time is made up for by his lack of skill selection, and so on...)
I'd dump spells, but they're nice cause they encourage Wisdom, a definite Ranger necessity.
If you want your Ranger to be a better fighter multiclass to Fighter. If you want your Ranger to have sneak attack multiclass to Rogue. If you want your Ranger to be good in the wilderness (or, in broader terms, good in familiar situations) you should be able to take Ranger.
Oh, and I don't care one way or the other about Virtual Feats. They're kinda clunky, but not difficult to deal with in practice. Front-loadedness is a problem, poor flavor is a problem: I agree with you there. (although I think archery is more suited flavor than TWF; however, I'd say no fighter-style combat bonuses is more correct.)