If you jump someone with a pickaxe, it's almost as good as a shotgun. Unless they have suitable armor on that can resist 2 pickaxe hits, then it's pretty much over. I personally think that pickaxes/bows need a bit of a damage nerf myself :S So many times I have gone from naked in rad town --> pickaxe in crate --> stealing guns/armor off armed players.
and it should stay like that. you want a melee weapon swinging as slow as that to do no damage? the risk of losing stuff to anyone is what keeps you on the edge in rust. dont make dying harder.