I support HE dazing because HEs are terrible.
Scenario 1: The damage you deal is inferior to what fragmentation grenades deal.
Scenario 2: The damage you deal is greater than what fragmentation grenades deal, but due to the lower damage overall as well as the general tendency for enemies with big resistances to also boast a big health pool the grenade wasn't that useful to begin with.
A mark 5 HE grenade, which is essentially a late-game grenade with a heavy Chemistry investment (especially due to the general lack of things to level Chemistry for anything other than explosives, which get outdone by plasma grenades with Electronics due to energy damage anyway) can barely even deal half a Bladeling's health in damage.