I absolutely agree with OP. It's NOT that Hybrids are bad at all. Bard is the perfect example. Bard is not supposed to be the TOP damage dealer as the future specialization of Ranger will be better to pick that up. Bard was given the ability to be a proficient enhancing magician as well as a damage dealer. Bard takes a lot more tact to play than simply being the Ballad b***h. Positioning is one of the most important things. It is a nessesity to get your party members to position themselves so that there is a fine line between frontline jobs and backline jobs. Ensure that your mage's and probably your paladin have Ballad, but then after collecting TP position your self so that the Damage Dealers can have Paeon. This maximizes Bard's use and then leaves them ready for battle mode as they will have Paeon on themselves. Also casting stoneskin where you can is a necessity to help white mages so they can pop an AoE regen every once in a while.

Of course these instructions are a lot more difficult than simply healing, tanking, or damage dealing but this is how a hybrid works; on spare mechanics that make you have to go the extra mile.