I always viewed staves as a means to an end. They are really more mid-game weapons that become less useful after a certain level. The auras make staves worth it when you're taking on a boss as a crew. However when you get to the point where you can loot at the gold room or south idol, voodoo doll healing is where it's at. Auras simply aren't enough when you are gaining and losing massive amounts of health at once. It just isn't worth it to stay close to the aura caster when blunt force + healing is more effective in every way. This goes doubly so for fighting at Smasho or The Watcher.
That said, they are the flashiest weapon type in the game so you would expect them to be more powerful. Not that they aren't powerful, but for even your strongest staff, there will always be a stronger sword, blunderbuss, or throwing knife that can attack the same AOE faster and better than you can charge/cast an attack. I think this becomes especially obvious in PvP.