DPS meters have ruined every game they have appeared in. First, they encourage people to ignore proper fight mechanics to pad numbers. So many fights have mechanics that reduce overall dps that are completely ignored by players who want to pad their DPS Meter numbers. These people universally point to their DPS numbers to justify their performance when I would much prefer that they switch targets and/or do the right thing.
Second, dps numbers do not reflect raid performance; they reflect player gear. A player who maximizes performance in lesser gear will often have less dps than a player who is average in superior gear. That is a truism in MMOs that many players simply ignore.
In PVE, you are doing well, when your team downs the content. Period.
If you really want to know how you do in comparison to others, then play PvP. That's the only meaningful way to find out how you stack up against someone else. Even then, gear plays a huge part, but a lesser geared player who is very good, will often beat a geared player who is clueless (at least more often than occurs in PVE).
I disagree. I think bad
guilds and bad
groups used DPS meters inappropriately-- looking at them as "Person 1 did x DPS, Person 2 did y DPS, therefore person 1 is better." If you want an addon that ruined games, talk to Gearscore.
Addons like Recount let you see not only how much damage was done, but how many interrupts were performed, how many CC's (and broken CC's), and other useful stats that could really give you a good idea of who needs improvement. For newer players, it was also useful to see where improvements can be made. If a similarly geared character of the same level and class is doing significantly more DPS than you, you might want to ask that person a few questions and see what you're doing wrong.
Recount was also extremely useful for healers, to see how much overhealing they were doing and particularly which spells were overhealing. I used this to develop new healing strategies when Cataclysm hit (and mana conservation actually mattered).
One last thing: If you have one DPS in your group that is doing virtually no damage (or 99% of their damage is autoattack), then yeah-- he needs to be talked to. MMO's are about downing content by working as a group, not 90% of the raid carrying the bad.