1) Ranged weapons and close combat weapons can both be useful. The balancing act is a bit less troublesome.
I've been playing around with a melee mecha character and I think they're viable, if tougher to use. Here's my observations (I should mention I play in Tactics mode only, YMMV in regular mode):
Mecha -
- Obviously the main disadvantage is a lack of range, but I didn't find that this is crippling. It would be if all melee weapons only worked on adjacent targets, especially in space, but thanks to THROWN+RETURN type weapons, if you have these you still get to make a lot of attacks. Magna Spear, Pilum, Razor Wing - all solid damage-dealers. EXTEND is helpful too.
- Leads into the next disadvantage: it's easy to pick up good guns and missiles of many varieties but good THROWN+RETURN or EXTEND weapons are quite rare. There are plenty of good examples on custom mecha or very
very rarely in a custom part store, but getting these things is basically down to pot luck. I did get a good loadout eventually but it took a lot longer than it does for me to get good ranged weapons.
- I think you need Initiative and a fast mecha (I used a Vadel, a Pixie would do well too) to make it work. I don't think a slow heavyweight bruiser is viable because you'd just get mobbed and torn up. Maybe if you had an area-effect BLIND ranged weapon as a softener, I think the Bargol has Night Missiles or something IIRC, those would do it.
One idea to help balance mecha melee weapons more is giving all the non-thrown melee weapons a 360 arc if on the arms and 180 on torso/leg mounts.
Human scale -
Combat ranges are shorter overall, almost always in confined areas, and most of the best guns either have minimum range penalties or do area damage, so melee weapons definately have a place here. Melee weapons lack the mass carnage ability of the SWARM guns (Assault Cannon, Pin Rifles) but they can hit a single target multiple times with one attack and really shred it up; each approach has its pros and cons, I think they balance out.
One thing I'd like to see is more weapons (in general too, not just melee) using different stats, like the Skull Cane using Ego and the Steel Fan using Charm, I think these are interesting.