When we reach for it
Every system we build or take over. It goes in before optimisation, which is what makes an improvement attributable. It also makes the monitoring vendor a decision you can reverse, because the instrumentation is written once and belongs to you rather than to the contract.
When we would argue against it
Nothing — though tracing everything at full sampling on a high-volume service is a bill, and the sampling policy is a decision, not a default. Traces on everything at full sampling is an expensive way to store noise; retention and sampling are numbers somebody signs off, not defaults nobody read.
What it looks like in delivery
Trace context propagated across service boundaries, and a baseline captured before any performance work begins. One trace identifier follows a request across every service it touches, which turns “the system is slow” into a named span in a named service — the difference between an investigation and a discussion.