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I think they are underrated. I5 is a big advantage that nothing else in the Khorne repitoire can match.

In a World Eaters army, though, everything else is already so expensive that I never have enough points left over to take any.

3 S5 power weapon attacks at initiative 4. Good luck charging a bunch of banshees or daemonettes with that.

False analogies. We're not assuming long-term combats here. Flesh hounds are supposed to pin things down long enough for the hard-hitters to get there.

Higher initiative increases the survivability of light shock troops. If they kill things that haven't attacked yet, they don't have to make as many of their weak saves. They will always lose a battle of attrition, but they're meant to move in fast for the first round, and then thereafter work in conjunction with slower, harder hitting troops (like bloodletters).