Latch definitely exists for a reason, it is a vital and strong move for Olimar's repertoire. However at current knowledge of Olimar it is not where the majority of his damage comes from against strong opponents. If latch was so usable for damage, his incredible damage dealt on most other moves would be unreasonable and overpowered. Latch exists for much the same reasons as Peach's turnips. Latch is best used to create a favorable situation. I'm getting lazy and am going to copy paste something from the Is Olimar too powerful? thread.
In a high level game peach still used turnips, although they rarely directly caused damage to the opponent. Why? Cause turnips were a tool of all important spacing and mind games, they required attention and response of the opponent, even if the response was as little as staying still so the turnip thrown will miss them. That means that peach held in her hand the ability to force a decision from her opponent, how to deal with the turnip. If it meant moving, peach could anticipate them moving, and plan accordingly. Likewise if they shielded, that was knowledge, same as if they caught it, but then you knew you had to respond to it, but they couldn't do any normal A moves till thrown. In a sense it allowed the peach player to create a decision, and by using the opponents response to it she could follow it up with the advantage. This has been too theoretical, so take a simple example. One of the first easiest ways to win with peach is to jump, throw the turnip, and then dash after it. As the player shielded or moved or caught or whatever, a simple dash attack could usually punish their decision, or at least a grab. If you don't believe me try it out.
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Will thrown pikmin fill the same role? I don't know yet, for the most part it seems they move too quickly to be used in the exact same way, not to mention i don't have the game and don't really know the amount of lag Oli has to know if hes fast enough to follow up like that. But i do see alternatives in the same idea. If you manage to latch someone, they have to decide what to do about it, take the damage, or attack/roll to lose it, effectively the same way peach forces a reaction with turnips.
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So I don't expect pikmin thrown with SideB to be so much a staple for damage as a method to create an advantage for Olimer.
Nearly two weeks later, with more videos/experiences/details, I still feel the same way I did when i wrote this. Throwing a pikmin is a mind game que, which could ultimately lead to success and damage / map control / edge game / KO / winning the match. If players just sit there and take the damage from latch, well you should have no trouble defeating them, but no ones impressed by someone who beat the mentally challenged kid. I understand play style choices on a small scale are fluid and reflect the number/type of pikmin you currently have. I would argue though that throwing a couple white at the opponent to earn a free second, which you use to throw the rest of em off the level to get new may be your best option =P Given a choice though, I agree with you, if I had to choose between all white, or no pikmin at all, i guess i'll take the white *grumbles*
-True