The upped version of this card has the exact same effect (1 dmg/draw) but just with 2 atk. To me the attack isn't even a boost to the usefulness of this card seeing as it just makes Will-o-the-night vulnerable to CC shields, which you're going to need to face in pretty much every stall deck.
Sort of like the Chrysaora-Physalia situation except even worse because speed poison is actually a rush deck where those little bits of 2 damage can actually be the difference between a successful rush and getting shut out... So if this card is meant to be a counter for stall decks that utilizes HG as you argued, then the 2 bits of damage is actually a liability.
As said in earlier posts, I agree that the card is currently not worth being upgraded, and should rather have atk and 2 dmg per card drawn. I said "unupgraded version is good" and you answered "No! Upgraded version is bad!"

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I missed the bit where you say that Will-o'-the-Wisp is useless against players because they would just stop using their hourglass. Well then, 6 of these negate 6 (more expensive) hourglasses, while still doing 2dmg/turn each (once Déjà -Vued). That's not what I would call "useless". Will-o'-the-Wisp is a powerful counter to decks relying on a massive draw power, and a decent low-cost damage dealer against other decks. Definitely not an useless card.