Yes, it is rather good. That is why it does not have its rounds scale like a normal bard's performance would. Unless you invest some resources, you are stuck with those 4+CHA rounds for your whole career.
Of course, since it works the same as performance for the purposes of feats and prerequisites, it is not that hard to get more rounds per day. Lingering performance basically triples your effective rounds (it makes performance effects last for 2 rounds after you finish, so just activate, turn it off, and enjoy 3 total rounds before you have to decide whether to waste more rounds). There is also a feat to give 6 more base rounds (which you could also triple with lingering performance).
Of course, even with all this, it is not that overpowered either. The bonuses to attack and damage are about the same as inspire courage. Although, since it is a luck bonus, you could easily benefit from inspire courage too...if there was another bard in the party to do it; still, the point is that it leaves you open to moral bonuses. And it keeps the bard fairly much on par with their current melee and ranged abilities. At best (With fate's favored added on), it is fairly close to rage...which brings their 3/4 BAB chassis up to 'acceptable'.
Mostly, this ability only changes a few things:
1. ability to use it as a swift action from level 1, rather than level 7
2. Improves saves to a rather large degree-trying to aim at them with reflex or will saves can be a bit difficult
3. Improves Skill checks (mostly a problem since they could maximize some knowledge skills early when combined with bardic knowledge).
And all this is traded in for the bard's role as the party buffer (well, at least when performances are concerned).
Thought the Half-Orc's Sacred Tattoo was also a Luck bonus?
That's the point. You'll take Fate's favored trait so you keep +2 saves even without your luck. It helps ward off those attacks before you get luck up.
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Good question. Absent an official ruling otherwise, I wouldn't let anyone do it at my table, particularly as the combination with the Lingering Performance feat (another good one for archaeobards) would make it kind of OP. Invoke luck as swift action, cast spell; burn three rounds of luck. Then drop them at the start of the next round, continue to get double luck benefits for the next two rounds.
ETA: That's right; it's Dodge bonuses that stack. For some reason I thought Luck bonuses did.
Half-elf's favored class bonus also gives an extra round per level.
Is there a way to make your luck bonus apply to another party member through a feat or trait ... I've been combing through them and have not see one