I think that the speed of the arrow doesn't really change things that much. An arrow will never be able to go through a tiny opening that a bullet can go through. And even the best shooters will need to deal with the arrow traveling slower than the speed of sound.
Like you said the longer the shootable range the less one needs to be a hunter. Most, archers like the challenge of getting game in close. Sure some guys will launch arrows at distances that we think is insane. But, just like rifle shooters these guys find the challenge in making the longer range kill.
I was at the rifle range yesterday shooting my .17HMR. A few other guys were there shooting off the benchrests. One fella in particular was quite impressive. He was shooting a custom rifle in a 6mmBR wildcat caliber. A cool looking round made from a shortened .22-250 cartridge. He was shooting at 300 yards and had consistant 1 1/4 to 1 1/2 inch groups. I on the other hand wasn't shooting of the benches. I had my tripod sat up on the cement floor and was sitting down resting the forearm in my tripod and my left elbow on my left knee just as I do while groundhog hunting. A couple guys questioned why I was doing that. I explained that I practice shooting this way because I see how I really shoot then. My groups were in the 2 to 2 1/2 inch range at 100 yards and I was happy with my shooting.
Just shows how different we all think about the same things. Yes a crossbow shooting at 1000 FPS sounds great. But, for myself, I think it would make little difference. I'd still be waiting for that perfect 20 yard broadside shot at the buck that has no idea I'm there.