Most of the problem with Pulsars against monsters, in my experience, is that they knock monsters out of the way of other knights' attacks. This benefits the Pulsar user, because then the monster is in the right range to get hit again by the Pulsar.
So, if EVERYONE in the party used Pulsars at the same time, wouldn't the knockback benefit everyone?
Is there some other problem with Pulsars that I'm missing? Why are they so unpopular?
They're unpopular because of the knock back, as you say.
I disagree that the knock back is perfect for the Pulsar user himself. In my experience, one bullet often knocks the monster out of range for the next bullet. You have to manage the monsters carefully, to achieve consistently high damage.
So, even if everybody in the party did agree to use Pulsars, I'm not sure that it would work as well as you predict.