1. Locks and Mages are currently Top DPS so we won't be beating them in a hurry, however our DPS doesn't suck at all.
We have a few short comings that gimp us that we can look forward to being fixed in Wrath.
We have no AoE at the moment so in an instance like MH we struggle since Tab SW: P is the best we can do.
In Wrath we're getting Mind Sear. Problem solved.
We have big big Threat issues. Even with the threat reduction Talents, our aggro gen is so bad we can't Talent VE and a lot of the time we just leave it out entirely
In Wrath, SF will now give us an additional 30% reduced threat.
MF is our only Spammable Damage spell and because it's channeled any damage we take gimps us and in upper spectrum Raids there is always some AoE to worry about.
2. Hrm, it's a tough call really. In PvE pre-SWP we should be destroying Ret Pallies.
We're not going to be #1 in Raids but if you play well there is no reason you can't be Top 8 or even Top 5.
3. We're in Raids mainly for our Shadow Debuff and VT but we can still do enough DPS to justify our Raid spot.
Remember VT is only as good as the Damage you deal.
A SP who does crummy DPS isn't worth a Raid slot even for his VT.
O and Pitbull, DPS Shaman Specs aren't brought to Raids just for buffs. They do damn good damage when played properly.
Unfortunately like so many SP's people will use the excuse "I'm only here for my buffs" to justify playing like a bunch of morons.