Lave the burn the way it is.
Reduce Ammo count back to 5 rounds, reduce reload speed back to "Slow-as--blam!-"
Thorn only became a plague in the Crucible when it became easier to use by the (for lack of a more appropriate term) scrubs. I had Thorn back in the day, and while it was still just as deadly as it is now, it was a hell of a lot harder to actually be of much success while using it. You couldn't just spray bullets all over the place with little to no consequence like you can now. Bungie pretty much took the only "balancing factors" of the weapon (Low Mag, Slow Reload) and completely trivialized them because too many people felt that Thorn was too HARD to use. Now, it's weapon of choice because it's literally become overpowered and user-friendly.
SO... While Bungie's overreaction is partially to blame, the community criers are infinitely more responsible for the imbalance.
It was also almost useless in PvE though. Having 5 rounds per...whatever holds the rounds in these handcannons made it an exotic that was almost completely useless.
That statement is subject to your own opinion. If you were to substitute "Impractical" for"Useless" then I would agree you have a point. Thorn was never meant to be a PvE gun in the first place. One look at the stats will prove that much. Even as it stands now, Thorn is hardly ever seen out in the wild, and for good reason. Nearly any other Hand-Cannon provides greater benefit in PvE than Thorn.
More specifically, the lore itself supports this fact. Thron was an instrument of murder forged by Dredgen Yor himself to achieve legendary status in the Crucible.