It's not even close to a useless ability. If you're expecting it to net you kills and rack up damage easily then you're looking at it the wrong way.
XS flyby is an ability that's meant to cause that fear factor. It's supposed to make the enemy have to waste time finding a workaround. If you have smart teammates they'll use knockbacks to hit enemies in to it but otherwise you're meant to deny an area with it.
I've even used it as cover before. On voidstar I dropped it and ran into the fire without being noticed and defused the bomb. It has a plethora of uses, only in PvE are you looking at it for direct CC/DPS, in PvP you need to think about how a player would react to seeing it and use it to herd them into favorable positions for your team.