If I hit a Jigglypuff way out who held down (generally via spin attacking one that fsmashed my shield or something, which is usually only good on Fountain at percents where dthrow dair might not KO, or in the also somewhat rare case that I catch them landing with fsmash or combo it from the bomb/rang), I'll look to snipe them with the bow for free percent, since a full charge does like 18% or something (the other projectiles do less damage and give her free height to help rising pound, while the bow gives her almost no extra height uncharged and does 18% charged).
I'll try to gimp Ness with it too, although I also try to use bombs and the rang for that, which are often more reliable (or can at least mess up his sweetspot attempts to where he'll sometimes eat a semi-spike from up+B and die).
If I see a Sheik charging needles way far away I'll very occasionally start charging bow, since InternetExplorer once mentioned in a video of him vs M2K [it was him rewatching it and discussing his play] that if Sheik fires the needles, your arrow will often eat right through the needles and still keep going, possibly hitting Sheik, and if you wait for a few needles you can release it. I think it's generally better to approach, but if the Sheik is releasing the needles right away a lot, this is an okayish option.
I don't usually try to gimp Falco with it, I might.
It can also be used to snipe ICs if they go for ledge instead of going high (similar to Puff), then you can do whatever when they have to squall hammer again.
Possibly can snipe Peach out of a very low float as well, but that very rarely happens, and you want to force her out of float as fast as possible (so she has to parasol sooner and has fewer mixups in terms of fallspeed), so it's often better to pull a bomb and throw it (if the rang is deployed) or (best option if you have your rang) throw a boomerang in the way [then pull the bomb and re-aim if the rang misses].
But yeah this move is pretty bad. When I play PM I use it more, but the range on this in Melee is just very low. I agree with SAUS that trying to use it from platforms is better, but... I think it's usually more efficient to try to edgeguard via other means.
It is an excellent move for trolling in friendlies because most people know it's bad (as you mentioned, the swag factor). But that's of course not really a practical use for in tournament.
