Man lurking is a lot of work. Anywho, I have to agree with Oro on.... everything he said. I play a very campy Squirtle. I play people who are flat-out superior smashers than I am, but I beat them consistently because of Squirtle's slipperiness and combo flexibility. The armor helps too, nair and the angled dtilt are my best friends. I also feel that I win because of unfamiliarity, especially with how often I do hydroplane smash attacks and grabs - I use them excessively. Once they start shielding my hydroplanes, I start mixing it up by hydroplane grabbing and empty hydroplanes to grab them from behind as I slide. Not to mention his ability to sling himself across the stage from either direction of shell shift into an arial or bubble. I don't use bubble that often, and I usually use WD to keep up pressure, extend a combo, or tech chase. Rarely I'll mix it up and use Aqua Jet to get back on stage or even KO. But it is important to be able to use WD without getting punished or intercepted. Jump -> close range WD is good because if you hit them, you have a possible combo. If they shield, you're too high to hit and then you're gone. If they roll, you may be able to punish it, if not probably get away with no punish. If they spot dodge, it's almost a guaranteed punish.
I agree that it is a heavily overused move as a whole, but it is also a fantastic move. But Squirtle has a ton of good moves that need to be utilized in a more balanced ratio for the sake of maximum slipperiness. WD has too much commitment to be used excessively and still keep up slipperiness. What a word, slipperiness.
Anywho, I am going to my first out-of-state tournament Saturday (so tomorrow.) I doubt we will be recording matches, but if we do I'll definitely post it here. It's my tournament to lose but I'll do my best, gotta be humbled once in a while, otherwise you end up with tattoos of space animals on your biceps.... Kidding.