You need not hit with every iterative to outpace a disruption shot if you're built for attacking. Few worry about getting their 6th+ attacks to hit, and anyways a real attacker is probably looking at about +40 or higher with deadly aim or power attack online.
Non-blasting powers that get augmented are in many cases just keeping up with (and effectively being, given their cost) higher level spells. Granted a full caster may find themselves leaving an old control spell behind at higher levels (a one-time early morning affair for a wizard, but requiring a bit more care when building up your sorcerer), but there's also a wider available variety of spells to choose at each level.
Energy blasting being something that can change types is an advantage, but as you said, blasting is the least efficient way to cast or use powers. Makes the advantage rather minor. Researching new spells costs gold but gold is a rather minor cost for class abilities.
The system, yes, is 'better'. This cuts both ways; broken spells are far more powerful, and broken-at-the-other-end-of-the-spectrum spells are far worse. A well optimized full caster will easily trump any manifester, but if you're looking for decent balance, you'd have gone with the manifester in the first place.