Well from what I have seen with my R/E when you add a Fire string it does change the dmg to Fire, atleast I was able to cast Conjure Flame and it added dmg, which that spell will only work if your weapon is a Flame Weapon. As for comparitive dmg that all depends on what you are up against. Standard physical dmg has a more average dmg range throughout the game, but with elemental dmg you have to have a few items to choose from, just like an Elementalist respec'ing for various missions. Through most of what I have played of the PvE so far my groups Fire spec'ed Ele has been a god when it comes to dmg, but the first time we ran into Fire Imps I watched in a Warrior's Glee as he finally needed help since he could do almost no dmg

So, what I would recommend is, I know bag space is hard to come by, but, keep a two or three bows on hand at all time, try different ones out at different times and get a feel for what goes where. I think the extra dmg you can do when you find the right bow/creature combo's will be well worth the couple inventory spots. Just my opinion though and my ranger is only lvl 14 so things could be a little different higher up.
Ossain Taishar
Knights of Winter