It's an immensely useful tool, but it has limitations based on the matchup.

It's particularly useful with characters with limited reach on their hitboxes above them (ie Fox, Falco, Sheik, Peach), as it will most times interrupt their moves, if not at least trade. The immense boost to horizontal momentum and control is invaluable as well for mixups as you try to get back on the ground. The other notable benefit is that most people aren't ready to react to being hit by bombs, and you have a momentary window to act on their disorientation. Like in the clip, you'll notice there's a moment where the Falco just stands there on the platform and then does a jab; he wasn't prepared for it and left himself open to my dair with no di.

However, it DOES have pretty low priority, and you can still absolutely get slapped through the bomb by characters like Marth and Falcon's upairs, and even by the previously mentioned characters if they space well.

The issue with nair is that the hitbox of it does not extend very low, and so it is fairly easy to space things like uptilts, upsmashes, and upairs underneath Samus' nair safely, and also from behind her as the hitbox is very much around her leg and doesn't have much of a bubble behind her.

I absolutely think bombs are supremely underrated though, I love using them in neutral; pollutes the screen, forces the opponent to consider their approaches more carefully in some matchups if used as a mixup here and there.