You see, there is a problem with melee combat that is best known from the real world adage: “Don't bring a knife to a gunfight.” What it basically boils down to, is that the sword isn't the ideal weapon to use in most situations, but it is at it's most glaring when you look at other options with a range and/or power (or perhaps even ease of use) advantage over the sword. This problem was addressed in real life, by the eventual phasing out of the sword from modern conflict.
The sword didn't get phased out until well into the age of gunpowder. They were still using bayonets and cavalry sabers in the American Civil War. In a world where you don't have accurate, reliable, quick-loading firearms, melee weapons are extremely useful.
Certainly in the medieval era, nobody would have suggested that all the knights throw away their swords and lances to pick up bows! Archers were an essential component of medieval armies, to be sure, but so were infantry and heavy cavalry. With the exception of a few cases where the terrain was heavily in their favor (e.g., Agincourt), archers on their own would have been slaughtered.
Most players want their swordsman to be just as cool as everyone else (at least). This has lead to the balancing trends that you see in games, and especially in modern games, as most things build somewhat off of those things that have come before.
Okay, so if I get you, the point of this is to ask how D&D should go about balancing the advantages of ranged weapons (specifically, the ability to hit people from far away) against melee. In general, when addressing questions like this, I like to start with real life. Real medieval armies didn't consist entirely of archers; why not? If the answer translates well into D&D rulespeak, we get verisimilitude and game balance in one neat little package.
If you've got a bow, and there's a guy with a sword in your face, you're pretty well screwed. So make it difficult or impossible to make ranged attacks when being attacked in melee. Also, arrows were generally less accurate than swords. This would logically translate into a higher attack bonus for the swordsman; however, I find that keeping track of multiple attack bonuses is a pain, so a smaller damage die could provide a similar effect. And in fact, these are the solutions D&D has historically used. I see no reason to abandon them.
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