AR's were not ever meant to compete against those weapons at close range. AR's are not close range weapons and are not meant to be either.
AR's are for medium to long range and not close to short range.
AR's are not SMG's there is no SMG in destiny.
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Exactly, I find Bungie's claims that they're supposed to be close range (4)chansaws* to be one of the dumbest assertions I've ever seen from a game developer. *typo, I ran with it