In my opinion: PVE wise, we're not really nerfed. All specs do great damage, all are fun. The problem is, nearly every other class/spec got gigantic DPS buffs. I used to think it would get better at 85, hell from my playing time in beta, it looked like it would be ok, but looking at the scaling of spells from 80-85, there really is none. We gain no new DPS moves, things still scale the exact same, we just get about 100 more bonus damage per hit, which is like every other class. I can't think of any other class that gets new, DPS increasing moves at 85 (correct me if I'm missing one), so that means that we will STILL be lack-luster.
At least, this is what the math seems to suggest.
PVP wise, we are sorely missing AOTF, and getting outdamaged 1 on 1, so it feels pretty bad right now. I've PVP'd a bunch in beta and Fox is gigantic, both the ability to move and Steady Shot, and also the large amount of Focus gained when melee'd (and fights last long enough where when fighting a melee, you get hit often enough that its huge). The reason it wasn't so bad damage-wise is crit is so low in the 85 premade gear, and everyone has a fair bit of resil, so it feels a bit smoother, instead of short bursts of killing/dying (if that makes any sense).