Let me just say that the new DC code has been unanimously loved by everyone I have played with thusfar. Yes it does loosen up control a bit, but people really enjoy the sliding, and even moreso enjoy direct C-stick down smashing out of dashes.
It might be psychosomatic but most of the people I played with, including myself feel that the new DC code actually increases approach options from the ground. Yes you could DC and then downsmash but it was never as fast, nor did it create sliding effects like this DC code does.
Now, I do see what you guys are saying about it interfering with DACUS in weird ways and making sliding get out of control, and this seriously could end up being a problem. If that is the case (and I'm not totally convinced it is but I need more testing to figure it out) I suggest we possibly put in a code that does allow direct down smashing out of dashes (whether C stick or otherwise). The quality of play at all levels from casual to pro in my playgroup seriously increased once we realized this shortcut was implimented. It's basically just another approach option, which is great. So even if we have to rework the actual canceling and sliding mechanics, I think a d-smash shortcut from dash would be great (although personally, I am still digging the instant canceled dash stuff that is happening right now).