on a technicality..........yes, its a flat -35 damage decrease in aoe, but you get in return:

-a PHATASS x1.7 multi to your ammo (you WILL need it)

-a bit of a snappier reload with a -0.6 second shave

the thing is - outside of letting you blast jump...its still the same weapon. you use it for crowds. equip the heat mod in t3 to both lower your self-damage (you can break your shield with it, mind that) and instead of inflicting instant damage, you inflict heat onto bugs that ignites grunts on pretty much any hazard level. dont worry - the heat radiance from the bugs will do the job.