Where comes this info that blood is bad dps ?
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Because the spec used to be very broken. Nowadays only Blood Gorged doesn't work properly, but even so Frost Strike deals more damage than it should in ICC so Frost is still better than Blood. And then we have players who just fail at the spec which only further worsens the spec's image.
I imagine it's gonna be the same with Arms PvE on Lordaeron. It's better than Fury on low gear but go tell that to people who have no idea of Warriors and have never played Arms in PvE...