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Yes, in the unmodded game melee characters are very powerful, and easier to play if you're soloing. However, ranged attacks (including ranged magic attacks) have their own merits, the most noteworthy is not having to run up to a target to start attacking. The ability to start attacking quicker is a factor that no number crunching will be able to quantify. Rangers don't have the limited "ammo" that mages do (referring to mana), but the healing / buff casting abilities of mages more than makes up for this extra burden. Basically, I find a well rounded party (including characters of each class) to be quite effective, not to mention practical when considering loot drops...

Also, combat effectiveness is not the only factor here... what each player considers fun is key.