DMR overall is actually not that good, even though I like to use it.
Its probably better to two body shot with BAs than actually land kill shots with DMR at a distance, and closer up, ARs and LMGs chomp on it (not to mention Carbines can be as competitive with ARs).
I thought the balancing in BF2 was perfect for DMR (though there was no such category). SVD and Type 88 were both ohk headshot at any distance, but they had larger spread compared to BAs, making it a viable choice at mid range engagements.
Now, since many people are too used to guns being laser accurate, most of them will QQ if the spread is increased in all the weapons. And because of this, DMR sort of lost its place as you cannot give ohk headshot when its accuracy is too great, and since other weapons also had accuracy buffs, DMR has hard time fighting against them too. On top of that, DMR is now an all-kit, making it even harder for balancing to be made on it to become ohk to head.
I'll still use it from time to time, but I think I will stick with something else if I am being serious. I still need to unlock MK11 anyway.