Yeah accuracy means a lot but I wouldn't say it would equate to a damage increase, in game terms I think of it like shooting someone in the head because your more accurate. Just because you have a accuracy boost making it easier to hit the head doesn't mean your bullets are doing more damage. It just means your hitting a damage multiplier, with the 2077 grip you are now doing magically increased damage which is then multiplied on hitting a vital organ. Increasing accuracy/decreasing spread sure but a base damage increase doesn't make sense.
It makes more sense if you consider it to be
lethal damage and not just pure damage.
Shooting someone in the arm enough times can kill them, but it's going to take a few bullets. Many, if their arm is built up enough or they simply have that strong of a constitution. But a bullet straight through the eye, despite the lesser overall damage, is still far more likely to instantly kill them.
That's how a punch is often the weakest form of attack; it's not that humans are incapable of doing serious damage with a punch (we're amazingly capable of it), but that killing another human with a punch is usually extremely difficult. Note there are ways to instantly kill someone with a punch, but it's not that likely to happen.
So, better accuracy does directly translate to more lethal damage, if that is what you're intending to cause, by making certain the bullet is more likely to strike where it can deal the most lethal damage. But it does not translate into more damage overall; a 9mm pistol will not ever do the same total amount of overall damage as a .50 sniper rifle.