Demon Hunter Steady Aim Gives More Damage the Further Away you are!
In the passive skill tree, Demon Hunter Steady Aim becomes available early in the game. It is unlockable by level 16.
In the beta, the skill was available at level 13 but it was changed for the final version of the game. It seems that the level requirement was set at 16 on purpose to force the player decide if he is going to play melee or ranged before reaching endgame content.
The skill actually encourages the Demon Hunter to stay outside of melee range. It offers a 20% damage increase whenever you DO NOT have enemies in a 10 yard radius.
It might seem difficult to accomplish in a PVE environment. In most situations the Demon Hunter will encounter three or more monsters. This will force him to kite the enemies and deal damage while moving.
As a consequence, melee targets should pose no threat. When the situation gets crowded, having no enemies in a 10 yard radius is is impossible.

For PVP, the Demon Hunter Steady Aim skill is easier to manage. Players chase and kite each other in a match to stay out of melee range or avoid spell casters.
In normal circumstances players avoid having enemies within range, making the damage bonus easy to maintain.
The discussion around this skill renders it a must have for almost all Diablo 3 Demon Hunters. In parties, if there is a tank present, the skill will prove its true potential. When fighting bosses, the monster will be focused on the melee tank while the Demon Hunter can stay safely at a reasonable ranged distance.
Steady Aim is that kind of skill that decides the play style of the gamer.
The Demon Hunter is effective in both melee and ranged combat. Passive skills usually decide in which direction the character will go.
Popular Terms
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” It seems that the level requirement was set at 16 on purpose to force the player decide if he is going to play melee or ranged before reaching endgame content.”
This makes no sense. That decision was made when they chose the class. A melee demon hunter is completely non-viable, even with the best available armor. In fact, even a wizard is far better for melee.