Im not taking sides here, since logic is out the window when it comes to stagger...
If u get hit by a giant two handed sword an dont get staggered, then a tiny arrow should´nt get u staggered either.. So i can understand the melee crowd reasoning for removing it.
How ever i still think there should be a tiny stagger, since it would also look silly if people just ran in a straight line taking hits without getting slowed down..