I'm almost up to level 35 with a sham+4warrior team where my 5-hunter team stopped in beta. So far, they are far more resilient than the hunter team to "oops" situations, though the repair costs are 100% more expensive in spite of hunter ammo costs. In terms of DPS, they are also better (for me, I was 5x BM spec) post-30 at AoE damage.
As for general playability, after the 2.1.0 Avoidance ability and instant Mend Pet HoT, it got better, and 2.3.0 effectively removed the deadzone but IMO hunters (BM in particular) really didn't come into their own until the pre-Cataclysm ~4.0.1 patch with Glyph of Misdirect (no cooldown if targeted at your pet). That really, REALLY helped control aggro, especially with adds.
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