You almost never hear the SMG is OP because everyone uses it... It's like a bar full of alcoholics no on admits they have a problem instead they say the world has problems! So it turns into buff the pistols! reduce Magsec kick! etc.

The reason the SMG is outperforming is because the only "usable" pistol to compare it to is the ScP with after the nerf takes accuracy and timing etc. But the SMG has the largest magazine out of all weapons accept the HMG and the Krins. Why would a sidearm be able to compete with damage and combat functionality of all rifles accept range?

The SMG is the oldest sidearm in this game (by chronological weapon order in market) and does the best damage profile (as of now) it was made in the time of no aim assist or bullet magnetism... The ScP had accuracy and the SMG had spray, but after all these changes the SMG hasn't been hit hard at all, compared to pistol performance, accept the occasional damage or range correction.

The reason the SMG isn't raising alarms is because it would crank EVERYONES play style accept a select few who are racial nuts or like screwing around. How does a sidearm do more damage than a rifle bullet? With only a slight RoF and functioning range reduction? With a larger magazine size!? With the pistols you can kill off 1-2 people if your good with the exception of heavies (accept the FP). and with the sub easily 1-3 including heavies...

So what needs to be done about the SMG magazine size nerf? Damage? RoF? the issue is it has over impressive range compared to the pistols so that needs to be hit... It can engage way to many targets on one mag... But this is where the road splits,

1. we can keep the damage and reduce magazine size to 25-35 to instate a finishing weapon.

OR...

2. Cut mag to 60-70 and make it so you have to drain most of the mag by halving the damage to 10-11 so it fulfills the credo of "...what it lacks in stopping power and accuracy it grossly overcompensates for with quantity..."

We don't need a handheld BK-42 to do everything when our light weapon runs out...

Let me know which side you think is better for the SMG.

You forgot to factor in damage profiles. The SMG does more damage vs armor than an AR. As it should.
I personally want to see the rest of the sidearms brought up to the "almost as good as a light weapon" status of the SMG.

Last time I checked, I thought the Gallente AR (now known as the plasma rifle) is anti-shield. In that case, the SMG is suppose to be better against armor than the AR. In fact, the AR's proficiency skill book shows it's anti-shield, not anti-armor. You just invalidated your counter-point.