I'm not sure why I added that to them. But with them having that, I am in total agreement with you: there is absolutely no point to using 110s. Thus it seems likely that their munitions are on the chopping block.
The civlopedia suggests they were not meant to fly at high altitude during the day, which would also significantly weaken them for daytime interception missions.
In any event, I think the core issue with Bomber Command is that there is no good way for the pilots to become veterans, like the 8th has. If they are vets, they seem to do much better, unless they come against a vet, in which case it drops again, but seemingly not too bad (though again, small sample size).
While I think that getting veterans is an issue, it doesn't solve the lack of survivability for planes on their first mission.
Thinking out loud:
Could an RAF bomber that presses k next to an enemy urban target in Germany (not occupied) be changed to vet status (but not the first munition it drops with k)?
I was initially going to ask if we could have it so any bomber that has NONE and rearms gets changed to vet but that is easily exploitable by dropping bombs in empty English fields. If it's possible to only bestow this for pressing k next to a target in Germany (read: deep raid) then I think things might balance better. Perhaps even the 17 and 24 could have this mechanism (you'd have to get there, but if you did, you might have an easier time getting out).
That's possible, and I would agree that if making an attack grants veteran status at night, it should also do so during the day. I'm not convinced that is the correct solution, but I don't really know why, beyond the fact that the bombers can get chewed up before they get to drop their bombs.
Getting rid of veteran munitions would solve the survivability problem. It is a bit of an issue for the Germans as well, making it difficult, for example, to escort Stukas. However, that does weaken the value of veterans significantly, so I'm not sure.