@Robin Smallburrow
Thanks for bringing that up up the Complications. As you pointed out, it's one of this little rules that tends to get overlooked. Though, I concur with the assessment of downgrading the penalty for all short bows not just cultural weapons. In fact, the Woodwoman character in the first TOR campaign I ran, used a short Bow as her primary weapon for the very reason of reducing those penalties.
While I personally prefer just using the Complications, but here are two other House Rule ideas for folks to consider: Giving short Bow wielders an extra Combat Advantage die while in the woods; or counting all Eye of Sauron rolls for Great Bow users as fumbles while in the woods (on account of it getting easily snagged on branches, stumps, etc).
@Eclipse
In regards to you remarks about the Wood-Elf cultural rewards, I must admit that I had the same initial reaction. Consider this, however, there is nothing to prevent your Elven spearman/woman from having two spears.
A Bitter Spear for throwing in the opening volley and a Great Spear to use with the Spearman's Shield once the melee is joined.
As for you query regarding why the Woodmen can have Great Bows whereas the Wood-Elves generally do not, I also have an answer. The Woodmen are a diverse lot who, unlike the Wood-elves, do necessarily keep to the woods. In fact,
Heart of the Wild gives Woodmen of Mountain Hall an alternate starting skill set and Cultural Blessing, replacing Woodcrafty with Mountain Fighters (which provides the same bonus just for a different terrain). The Woodsmen Cultural Weapon is called a Shepherds-bow for a reason, namely it is favored by those who protect their herds.
The Great Bow would then be used by those Woodmen watching over the cattle and sheep in the Anduin Vales and drive off any eagles, grim hawks, or wargs looking to make a meal of the critters under the guardianship, in addition to hunting in the open reaches of the vales. The short Bow would, by contrast, be used in Mirkwood to hunt game as well as protect the pig herds from predators.
@Corvo
To Legolas she gave a bow such as the Galadhrim used, longer and stouter than the bows of Mirkwood, and strung with a string of elf-hair.
-The Fellowship of the Ring, "Farewell to Lórien" p.366
So answer your question then… possibly.
It is conceivable that the Galadhrim use Great Bows, but not a forgone conclusion, as they could theoretically fall somewhere in between true Great Bow and the Woodland Bows of Mirkwood.