Condition damage is an incredibly powerful stat on a lot of characters.
The main problem it has is that against trash mobs they’ll tend to explode before your conditions have a change to do any work, while against actually difficult foes you run into massively hostile mechanics (half condition duration on a large number of champion and legendary mobs, frequent condition removal on top of that, plus dealing with the bleed cap) that severely neuter the effectiveness of conditions in any sort of team environment.
Condition damage is incredibly powerful when it’s not being held back by these limitations. It is incredibly powerful in PvP, where your enemies tend to not fall over dead in a couple seconds, giving your conditions time to work; similarly, you don’t get rocked by natural half or quarter condition durations that make your skills useless. Unfortunately the only place you really see something similar in PvE is when soloing world veterans, or 2-3 manning champions; when your bleeds have a chance to work on a foe that doesn’t fall over instantly, their power becomes obvious very, very quickly.
The advantage of normal damage isn’t that it’s mathematically superior, simply that it isn’t hated out viciously by the mechanics of the game.
I wouldn’t say “incredibly powerful” considering that even with everything working for the condition build the direct damage build will do more damage quicker. With conditions being limited by stack/duration there is cap on how much damage you can do with them. On my thief I can easily cap bleeds and the sad thing is that I could apply more. The obvious multiplicative advantage of Power x Crit % x Crit damage x % damage increase is a HUGE advantage. Condition damage is limited to condition damage(equal to power) and condition duration(equal to crit), that leaves crit damage and % damage increase unaccounted for.
ArenaNet built the game on poor stat base. If direct damage stats can scale so dramatically then survival stats need to be able to do the same. Where is the crit reduction stat? Or the crit damage reduction stat? They could do some really fun stuff like 50% chance to dodge when crit(damage is evaded). If damage is greater than 25% of your health heal for 25% of your health. The truth is that ArenaNet was so afraid of there being tanks and healers that they purposefully left the game unbalanced towards direct damage. This actually has a weird side-effect when certain classes with certain builds can build “tanky”, since the game isn’t balanced around tanks being possible they become broken(OP). If defensive/heal stats were balance those builds wouldn’t be an issue since they couldn’t win via attrition.
None of this is going to change in the near future, especially give the current rate of class changes(even if some of those changes are huge leaps in the wrong direction). The only possibility of it changing is with an expansion, but even then the devs would have to switch from their anti-tank/healer mindset(not likely).