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So, currently WS is in a very strange position. It's not a bad or too situational unit, but it's a unit that needs certain conditions to be successful. First one is to be in good position on the flank, second - to not be discovered and eaten alive by cav or doggies, as he does not have any good escape or protection against them. And he takes quite some time to pay for himself But first, let's take about good and bad thing with WS currently.
1) WS has a very potent anti-infantry missiles. If you position him right, on your enemy flank, he will kill ~3 models with each arrows, getting 80-90 kills on average. He also does not care about which infantry unit he fires on, he can take 3 models from Dwarf warriors or Hammerers, armor and health of typical infantry does not seem matter here. For a 700 cost hero that's pretty decent.
2) Waystalker is really decent in melee, especially against enemy characters. 2 WS get Ungrim Ironfist to 50-40% HP in a pure melee duel before he routs both of them, but that happens mostly because they get exhausted against him pretty damn fast. If they wouldn't, I think they could do some great mischief.
1) WS get exhausted pretty fast by shooting and very fast in melee. That is pretty bad.
2) WS items are ALL bad. Currently you better off taking WS with no items equipped. In game 1 there was at least some sense in bringing Arrow of Kurnous, as it could somewhat reliably pay for itself with 2 uses and get some extra value, now it misses pretty much everything and it is 150 gold spent on nothing. His new item, Warrior Bane, is not worth it's meager cost as well. -6% enemy WS is very low. Almost every unit has some AP in his melee attacks, so if you take this item, you're limiting actual DPS of enemy non AP units by 3-4%. And it's useless on AP units. It's not worth even 70 gold, better to spend it on chevrons.
3) WS has no way of escaping if his position is being pinpointed(and it's not that hard to see where the arrows come from) and is not strong enough to defend himself solo.
So, what can we fix here? First, my ideas that I think are a must: 1) Warrior Bane should debuff - 6% WS and -6% AP. Then it would be a decent item. 2) Arrow of Kurnous must be reverted to WH1 status(with 3 charges of course). I do not think anyone fount it OP back then and will find it OP now. Edit: 3) I think that WakaWaka3000 suggestion would be the greats idea here: Reduce WS cost by 80, but give him access to Foe-Seeker. It feels pretty much perfect. Edit2: Or just give him Foe Seeker without cost reduction. That could be fun too.
Then, we got to do something about his survivability. Here are a few different ideas from me, each one can kinda fix his weakness: 1) Give him immunity to vigor. Then he could go solo on the flanks much more freely(and be a way better melee duelist). Sure, he can be tied up by enemy cav, but at least he won't be all exhausted by that point and beaten to death too quickly. My most favorite idea of all 3, simple and robust. 2) Give him 70 gold item, call it "Shadow of Athel Loren", 3 uses, 35 second duration, same effect on visibility as Assasins Smoke bomb(spotted only at very close range), +35% speed, +30% vigor, shooting or attacking dispels it. This item should give WS an escape only in case his position is scouted and retribution is coming, as well as a way to replenish his vigor. Not very reliably however. 3) Make his arrows invisible. This way his position would be quite harder to pin down, but this could become really annoying. And does not really solves the problem of his vigor in melee fights.
If this would be implemented, WS would become quite a unique and interesting unit - anti infantry sniper from range, and decent lord-hero assassin in Melee, as well as having some infantry support with his Warrior Bane.