I think you nailed it. Hall of Very Good. Jeff Bagwell, Tim Raines and Bernie Williams were all better.
Larkin's prime occurred when fast power-hitting shortstops like Jeter, Rodriguez, Tejada and Garciaparra were entering the league so he'll probably be the last SS to get into the Hall on the basis of "Well, he had great numbers for a middle infielder."
He also did a lot of the things that shouldn't matter as much as they do...played his entire career with one team, some gold gloves, won an MVP (with a .886 OPS, how freakin pathetic was 1995?).