I started using the level 2, and at least two of three things happens whenever I do:
1) The opponents do not know how to dodge it because they see it so few times 2) The opponents are in such shock that I used it they become derps and all die 3) The opponents call it overpowered which makes me laugh
It really isn't very good. Myself and a random Parappa player fought a pretty good Sly earlier. He had no problem getting the AP for his level 2 multiple times, however, he could not get any kills with it. Had he saved up for his level 3 we definitely would not have won.
Yeah its a waste, you either stay with level 1s or go for level 3s. Its too easily avoidable and very short in duration.
I haven't checked myself, but you can probably combo into it. Most of the kills I've gotten have been from the moment that I activate it while my opponent is in a punishable move. Then you get to try for a 2nd kill when they respawn. Chasing down the opponents is rarely successful, but it's something.
For what's it worth, your warning saved me from losing 5 seconds. You're sacrifice will not have been in vain...! - Raycon