I feel that if grenades should go, then so should special arrows. They serve exactly the same purpose, but one of them has an arbitrary limitation that makes no sense, especially when literally any character with 10 finesse can equip a bow and be just as efficient with them as any specialized archer could be.
But, personally, I feel that grenades have their place. Maybe they are too strong, but they are a limited resource, so I feel that balances out their usefulness IMO. Maybe make them drop less, of course, since they seem pretty plentiful, especially when noone even has basic supplies, like fresh water and fruit, but are somehow armed to the teeth with these grenades, and special arrows, and invisibility potions.