Useful answer taken from the ZSS boards:
It depends on the match-up and the percent.
Priority out of down-smash is like this:
1st Goal: KO
2nd Goal: Rack up damage
So, in any situation where you can KO out of the d-smash, do it. If they're over 120% and they're light, do a b-air. If they're hanging off the edge, flipkick spike them. If you have the option to grab for 10% or KO for a stock, of course you should pick KO.
However, if it's impossible to KO you have to think in terms of greatest damage. You want to be able to rack up the most possible damage -guaranteed-. Now, in order to do the most damage, you have to look at what's available for the character you are fighting and what percent they are currently at.
Now of course, if you are against a Squirtle or a Wario, of course you are going to grab, and then you'll grab-release infinite their sorry *** to a KO. If you're against other characters you can release chaingrab, like Metaknight or Lucas, then by all means, chaingrab them to the edge to control the stage.
However, if you are against a character that you don't have guaranteed hits out of grab, then you should think about performing high damage aerials. Double D-smash to F-air does a whopping 39% (in training mode). Double D-smash to Rising U-air to U-air (registers as a guaranteed combo at ~50-90%) does a solid 42% AND keeps them above you for a juggle. These options are better than the Double D-smash to D-throw which only -guarantees- 28% (give or take a few with pummels). I find that if you want to set up an aerial chase situation, U-air out of the D-smash is a much better option, since you're already in the air and have a much better chance of connecting with another aerial -and- you do more damage.
It depends on the match-up and the percent.
Priority out of down-smash is like this:
1st Goal: KO
2nd Goal: Rack up damage
So, in any situation where you can KO out of the d-smash, do it. If they're over 120% and they're light, do a b-air. If they're hanging off the edge, flipkick spike them. If you have the option to grab for 10% or KO for a stock, of course you should pick KO.
However, if it's impossible to KO you have to think in terms of greatest damage. You want to be able to rack up the most possible damage -guaranteed-. Now, in order to do the most damage, you have to look at what's available for the character you are fighting and what percent they are currently at.
Now of course, if you are against a Squirtle or a Wario, of course you are going to grab, and then you'll grab-release infinite their sorry *** to a KO. If you're against other characters you can release chaingrab, like Metaknight or Lucas, then by all means, chaingrab them to the edge to control the stage.
However, if you are against a character that you don't have guaranteed hits out of grab, then you should think about performing high damage aerials. Double D-smash to F-air does a whopping 39% (in training mode). Double D-smash to Rising U-air to U-air (registers as a guaranteed combo at ~50-90%) does a solid 42% AND keeps them above you for a juggle. These options are better than the Double D-smash to D-throw which only -guarantees- 28% (give or take a few with pummels). I find that if you want to set up an aerial chase situation, U-air out of the D-smash is a much better option, since you're already in the air and have a much better chance of connecting with another aerial -and- you do more damage.