The damage reduction means squat in any meaningful sense because the number of rockets it takes to kill a class isn't affected at all.
Slower reload adds a whopping .25 seconds to reloading the entire clip and it barely matters because that extra rocket lets you mop up stragglers. Slower reload means nothing when you've already killed everyone.
Charge shot isn't even an issue.
Five rockets in a clip is incredibly powerful. It lets you dive bomb with FOUR rockets, essentially adding around 90 damage to your volley.
The only true downside to the weapon is that you can't reload then fire another rocket as fast as the original rocket launcher, which doesn't matter because you already have that extra rocket in the clip anyway, plus any competent Soldier worth his salt would switch to his shotty if he ran out.
EDIT: Oh, and also, it actually does MORE damage than the original rocket launcher at close range thanks to higher ramp-up.
Yup. Totally balanced.