I've always been tempted by this game, but as you say, the melee combat seems to take precedence. That is the exact problem that the D6 Generation guys (good podcast) had with it. They speak about a Western miniature game called Gutshot (http://www.hawgleg.com/).
I'd love to play this, but I don't know anyone who'd play it - my friends are only really into GW games. From what I gather, I think it runs a bit like Inquisitor, in that one player must serve as the "Games master" in the sense that he runs the story etc...
I think the Legends of the High Seas rules benefit from being based on the LotR rules, but a Wild West system does not. This is the only thing that puts me off playing the LotoW game.