Notice in the video the amount of strength and time it takes to pull a full force arrow and what it does to the armor. You want realism? This is it.
Keep in mind this is a 160lbs WARBOW.
What we strive for is authenticity really and also a fun gameplay experience. When you have 24 arrows at your disposal, a spread of 3° and manage to shoot a guy 40m away for 20 damage, this is simply not fun.
As said, the issue is not the player, but the NPCs and especially their gear. Each Khergit Horse Archer and Bandit Raider use Recurve Bows with 120ish skill, meaning they are really accurate, especially on foot, while also having tier 4 arrows and likely 30 at their disposal.
Meanwhile you have a lot of core troops that have little armour, no shield and only limited range options. When fighting larger battles the amount of troops with sufficient armour and shields increase, diminishing the effect of even accurate archers.
However just tweaking each of these individual stats can have dire consequences for certain factions that rely on their ranged damage output, like Khuzait and Battanians, I assume.
Also a thing to note is that you will only really have massive issues with this, when you play alone or with a small band of guys. You will really feel the heat there, specifically in hideouts. So I think tweaks should happen there first, by allowing you to choose your party, decrease the number of opponents and place them so that you never have to face off against 9 archers with your 9 melee dudes without shields.