After the flame range nerf (read:fix) the pyro is no longer completely dominant within his personal space bubble. Fire detection lags so much that it takes WAY too long to get the person you're trying to kill to catch on fire so you can push them into a wall and axt them. This means two things, as far as the shotgun/flaregun go:
1) Fire is more valuable. Since you can no longer throw fire, the only way to get fire over a half-decent distance is the flaregun. It does some pretty good damage too, if you can aim it. And I don't mean "hey, it's better than nothing" pretty good, I mean "healthkit or you're screwed" pretty good.
2) Hitscan is more valuable. At close range, like I said, fire lags way too far behind the flamethrower to consistently use effectively. The new shotgun buff that causes one of the pellets to be guaranteed accuracy is also helpful.
However, there's not a lot of reason to be scared of pyros anymore. They have to lead so much at close range that you're pretty safe until they find the way you're moving and adjust properly, or happen to catch you while spraying randomly. Overall the pyro is going to inspire less "NO WAY I WAS NOWHERE NEAR YOU" but at the total cost of their usefulness, since they can now no longer consistently do anything at all. Not worth the effort required to get kills anymore, IMO.
P.S. Pyro theorycrafting in the Soldier thread, cool.