I think you should not tell people incorrect things like "getting hit is the worst that can happen", if this was supposed to be related to Melee.
I want to propose a concept that I've been talking about that I do a lot that REALLY works.
It's called "taking a hit on purpose." EDIT: This is a similar notion to crouch cancelling, but a lot more vast and underused. I am not the first person to do this by any means, but people do not talk about what I'm proposing seemingly ever so I hope you'll read what I say.
This game has something extremely unique to it: the combination of different types of DI, crouch cancelling, teching and edge cancelling. It changes everything in this game; rather, it adds an extreme extra layer of player interaction. It basically introduces a different type of counter play, aka a lot of inputs and reactions done while being combo'd.
Frequently in my experimenting with this concept, I've used moves that I know for a fact will put me in a position to be hit in a manner of my choosing. For an example, imagine charging a DSmash with Falco. You have set yourself up to do a move that is obviously not going to hit and you know (if you've been studying their patterns and know the match up) roughly what'll they try to punish you with based on their positioning. If they hit you, VERY frequently you can hit down + shield and tech the hit in place. Playing a character with a fast tech in place (spacies are amazing for this reason) allows you to absorb a contrived hard hit, especially at lower percents, tech in place, and stand and Shine or at very least, be in a position they weren't expecting.
Yet another example: lately when I mess around in friendlies and I'm way ahead with Falcon, I'll try to Falcon punch people. When it's obvious that they are not going to be hit, I prepare to tech their hit, immediately do so, stand and punish them. The fact that you can instantly tech almost every hit on reaction completely changes the notion of "don't get hit." Of course it's good not to take damage as a general plan, but you have to also consider that getting hit with all the crazy available defense options that CCing/teching/DI'ing offer, is just another mix up for your game play.
This is not limited to just doing laggy moves though. A lot of my combos I get to work with Falco, especially vs Marth or Fox, involve me doing to something I recognize as an over extension before I do it; however, the risk is negligible if I am already planning on teching the timing/limited moves I can be hit with, while the reward is often very great. Even if you miss the instant-tech I mentioned above, planning getting hit gives you insight and control of what comes immediately afterwards.
Also, as a nice bonus, if you try the insta-tech thing and are not doing a laggy move, rather just standing there, doing it far too early makes you spot dodge (they miss anyway) or powershield (frame advantage).
Basically what I am saying is, and what people think they understand but they haven't conceptualized to what degree, is that this game is about scenarios. These scenarios happen fast enough that people are normally content with binary thinking about getting hits; that is, YES I hit them, NO I missed them, conversely, YES they hit me, NO they missed me. But if you think about it more like Chess, which it's more similiar to than most fighting games, you should see the need for sacrifice for better situations/positions.
It honestly does not matter if you get hit if you've already predicted the manner in which they will hit you, because you will be prepared to react to that situation; you'll be ready to tech, ready to DI well, ready to slip out in any number of ways. The reason why combo'ing seems so ridiculous in this game (especially in the presence of skill gaps) is that combo skills come as a result of tech skill practice, often against computers, defensive tech skill (anti-combos, if you will) comes from a whole whole lot of experience at being combo'd hard by good players who combo well. Why does it seem like high level players are SO hard to kill? Because they are seeing another level of defense and recovery that you haven't observed yet.
Going back to my initial point, I can't say for sure what pros actually plan when, how and why they get hit, but I would be immensely surprised if this was not already in great use at high levels, intuitively at the very least. Ever since I've started doing this (really utilizing all the defensive techniques + purposely over extending to make situations look much better than they are) I have a much easier time a) living b) getting out of combos, even Kevin's, c) winning against almost everyone.
EDIT: Also relavant to conversation, if you see that you are going to get hit and can't tech it, try to reposition yourself as much as you can before the hit itself. You moving last second before a hitbox connects means you go in a different direction/angle/spacing than they were seeing when they started their move. Run into them a little further or try to cross them up even though you're going to get hit. Jump right before Falcos Dair hits you so you aren't in stun. Repositioning yourself as much as possible in the middle of combos is ESSENTIAL for getting out, especially if you've figured out the feel of edge cancels and insta-techs.
If I need to expand further on this, or this sounds ridiculous, please ask me rather than immediately rejecting this, or even better, try it for yourself.