Tuco what is it about VATS that makes you think its awful?
How many ranks do you have any one of the weapon perks like gunslinger/rifleman?
What about Action Boy, did you take it at all?
I have 1 in actionBoy and whatever my current max is in rifleman/commando (they just improve damage right?).
The reason I rarely use it is because:
1. It has bad accuracy at mid range, even at ~6 meters (just outside melee range) it's like 60% on head shots. I have 4 Perception.
2. I don't have enough AP to kill most enemies or even criticall wound them.(I have some... 7? agi).
3. The recharge rate is so slow that unless I duck out and recharge it's like a once per fight ability.
4. The delay before VATS activates+ the selection time + the time it takes to execute the sequenc + the delay after it finishes is enough that I can take a lot of damage at mid/close range if there are multiple enemies. (I can work around this).
My typical sequence is to pick off enemies with my hunting rifle if I can, if enemies are midrange go full auto at their face with my .38/10mm ammo, if enemies get close pull out my shotty. Depending on the circumstance I'll hit VATS with my shotgun, and use my AP there, but for now it's rarely better than just me manually shooting.
I can see it being very powerful later in the game when I have more AP, it charges faster and I have gear that reduces AP cost (the -40% on weapons is ridic, but I don't know if that can happen o nranged weapons, I've seen it twice on melee thus far). That plus the crit abilities will make it very powerful.