Pyro still needs a buff.
Close up fighting is meant to be what the class is all about but the flamethrower just lacks that quick killing power to take the other guy out and get away relatively unscathed.
If I pop around a corner and smack straight into a guy generally I feel I should win the fight, but far too often I just get owned on the second (if not the first) rocket shot from a soldier or get shredded by a heavy, and most other classes can backpedal fast enough to at least take me down with them.
This means my tactical options are generally limited to popping out from around the corner, unleashing my flamethrower, setting two people on fire and then having them own me in the head while they run back to a medic or other source of healing, or setting them on fire and hoping to get away with 50 or so health left and having to find a medic myself. There may be some sort of tactical advantage to forcing the enemy to retreat, but it's not very gratifying when that's all you manage and nobody dies violently but you.
Don't get me wrong, there are times when you come up behind a group and kill them all before they even realise what's going on, but those times are too rare. They're also an amazing anti-spy class, but that's the one class I actually feel confident going into 1v1 combat against (that or a lone medic).
It's an amazing class to use an Ubercharge on as well, but Pyro needs either more health, more speed, or for the flamethrower to do damage more quickly. Giving the Soldier a one hit instakill at close range sort of defeats the purpose of the Pyro.