Oddly, even my crappy gear generates about 500+ dps on a target dummy, that was at lvl 70 though.
We suck at melee but not as bad as we used to. I actually out dps'd a Paladin during a Kara run (trash mobs, just tried it out for fun.) My pet out dps'd ME by alot so we still suck.
I would guess you could do a melee centric build that did more damage and avoided more. Nobody would want to group with such a lightweight Hunter, but if it was for Role-Playing or just some odd solo-fun, I don't see the harm.
Please don't try to group with a melee Hunter unless the group is fully aware of your significant limitations. Also get used to your pet being more powerful than you in a fight. You'll also probably be primarily Survival but you might tap into some talents in MM and BM to help offset some of the crippling effects you are going for.
Make no mistake, Melee is NOT a hunter's cup of tea. We are a ranged class. If you are trying to make Aragorn, you'll do better in LOTR online.