The 17-50 VC is a pretty good lens. I like the constant F2.8 aperture compared to my older 18-55 then 17-85, plus VC works wonders for video, but when you need beautiful bokeh or there isn't much light, sigma 30/1.4 is better. I guess they serve different purposes.
As for the sharpness, I'm not bothered by wide-open softness as i rarely look at 100% crop. It looks pretty sharp to my eyes, but it's true f4 is much sharper than f2.8.
I did a very un-scientific test to compare sharpness at f2.8 and f4, here they are :
both at 17mm, handheld, MF, ISO 200, VC on
f2.8, 1/13 sec (yes, VC does help a lot)
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f4, 1/10 sec

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f4 is much sharper to my eyes, but f2.8 is also pretty good, considering it's 100% of 18MP picture
notice that only a small part of the picture is in focus due to the close focal distance
Here is a video I shot with 17-50 VC and 55-250 IS, the 17-50 VC performed wonderfully
http://vimeo.com/9144603