It doesn't do double damage in PVP, in PVP it only ups the damage to the Vision of Confluence archetype of guns. It does do double in PVE.
So if you use touch of malice like you say you'd have to have a 4 shot head with a gun that's not super stable while losing health with each shot.
Sounds pretty balanced in my book.
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Pretty balanced, but it's a monster if you know how to use it.