Glad you like the bug! hahaha
I don't know why AD does more than LD - Loriac mentioned at another time that rune arms do between 50-80% of spell power and, when I wrote that LD was consistently doing less damage for me, he theorized that the lower level rune arms might be getting less of the spell power than the higher level ones. (and, as Cthru writes, the elemental ones might get more than the force ones). I can only assume that's the case - I thought that LD would naturally do more damage, since it has spell lore on it, but it consistently produced less (against the training dummy and baddies). So I put it away.
How does Shadowdancer increase survivability? I, uh, maxed this ED out in Crystal Cove last week so I really didn't put it through its paces. The dimension door was nice, but I didn't care for anything else about the destiny (well...the int was nice, too).
But Fury...mmm...so enjoyable to do a ton of damage while having high hit points!
I primarily use an alchemical fire-acid-fire. That does the best damage over all of all the alchemical weapons. It even has a red slot for another damage augment - I have cold slotted atm, b/c I don't have my water-water-water alchemical finished yet and the cold gives me versatility. Once I get the c-c-c one done, I'll slot fire or acid.
Otherwise, I use a GS +++ for undead, and a Lit II for times when the alchemical can't do damage, plus the usual banishing and smiting xbows. The alchemicals are slightly better, since they have the full 2[1-10] rather than 1.5 [1-10] damage dice.