The needlegun is, as you say, a tough weapon to use. The problem you may be having is that you may be trying to use it like a regular gun. Because the darts fly in an arc and in a thin stream, if you aim straight they can miss the target easily. I use the weapon to instead create a wall of needles the enemy has to run into to get me. An example- on dustbowl, stage 2, cap 2 I'll run out with an uber from the gated tunnel. My partner is gunned down, so I run, persued by a scout. Going down the far right tunnel, I backpedal, spewing out needles, flicking my mouse left and right rapidly and strafing from right to left. As the scout turns the corner, he is hit my a thick wall of needles and is trying to target an erratically weaving medic. If he's dumb enough to continue, those needles will keep flying into him and kill him, without me worrying too much about how many land When retreating from persuing enemies, always try to turn a corner, backpedal and sprew out some needles, just to be on the safe side. Then find a class you can hide behind to save your ass.
Unfortunately, due to the weakness of the medic and the needler, this tactic will only work on some classes.
Scouts- go down fairly easy, but be quick as they catch up (running backwards reduces your speed). they will almost always try to finish you off.
Soldiers- nightmare. If I'm low on health, I'll often just leg it back to base (forewards, allowing greater movement speed) dodging all over the place. High health, feeling sucicidal- maybe.
Pyros- easy against stupid pyros who'll try to flame you, more difficult against ones who try to shotgun you. A close matchup
Demomen- much like the soldier, though be wary of pipe bombs missing you only to fly forewards past you into your advancing path.
Engineers- almost a free kill, unless you're near death
Heavies- although they'll rarely chase you, I'd get the hell away. As they're slow moving, you can usually escape with just a few bullets in your ass (unless they quit)
Medics- very dependant on health and needler accuracy- the better medic will often win out (unless is HP is rock bottom)
Snipers- like the engineer, ensure you keep moving erratically to avoid a snapshot headshot.
Spies- A fairly easy kill, but that revolver hurts if they hit you. The main threat is backpedalling straight when there's a spy behind you, waiting for the free kill.
The gravity and the arcing of the needles is something that is easy to explain (aim higher up when hitting further targets) but difficult to accurately judge ingame- keep practicing with it, and you'll soon know how high it's gotta be aimed.
The needler is, for me at least, a last resort weapon if my ally falls or if I'm alone (such as coming from spawn). Don't expect to get huge numbers of kills- it's not a weapon truly built for killing like the minigun or rocket launcher is. Your best weapons are your allies and your wits.
If you need any more info, feel free to ask

Qinetics