Falco's chain grab in high level of play can easily lead to 60-70% damage which is a lot of damage of course, but afterwards it doesn't do much else so he doesn't get a nearly as large reward for grabbing someone afterwards. High level players also never get killed by the chain spike. Most characters can just recover from the spike 100% of the time and the few that can't, they can SDI towards the stage and then the chain spike never kills. While the CG does matter, it's not the main thing that makes Falco a very good character. IMO Falco's strongest tool really is his general really strong defensive game with silent lasers + phantasm (you can't hit Falco in the first 1/3 of the distance) that is really hard to get around for almost all characters, especially when combined with his powerful CQC game you have to deal with after getting around his lasers. His spot dodge can be annoying because it has very little vulnerability, which can sometimes (not always) make it annoyingly hard to grab him even if you do predict it and he has pretty good rolls to get away too once the opponent is closer to his face too, especially when used smartly. Another good thing he can do is string pretty well (he often combos with stuff the opponent doesn't expect to combo) and rack up damage fast that way, but his biggest problems against most characters are landing a kill move and his recovery being relatively easy to edge guard. Overall he is an excellent character but I wouldn't call him overpowered, unless you main a mid or low tier who doesn't really have the tools to deal with Falco's camping game properly.