While I regard this as rude there are a few exceptions when I do it:
-If your opponent can’t figure how to counter something and falls for it again and again, I’ll just do one after his third mistake. He goddamn deserves it if that’s the case.
-When you really need the powerup, e.g if you’re Q. Or Ryu or Oro when you’re stunned badly. Unfortunately most people still get offended knowing this…
-When you’re using it as part of a tactic to mess the other guy up. e.g Ibuki, Sean or Dudley
- If he’s in the other corner building meter and waiting for you to make an advance, dare him with a taunt. Do this more than once if you wish. Mind games is all part of the game, ESPECIALLY if he’s a damn turtle.
Thats all. NEVER use it to:
-Kick him when he’s down. Meaning to taunt the guy after you down him a round. Thats just plain fucked up of you!
-Beat him to an inch of his life and use one of those taunts that hit for 1 damage (Necro, Dudly, Sean, Ken, Ibuki, Yun, Yang) . It’s humiliation in it’s worst way. I really hate it when my opponent does this to me. Thats so damn uncalled for.
Thats my “rule of conduct” but what the hell, It’s just a game. Taunting should be OK as long as your opponent knows you’re doing it just for fun. So use it for casuals or with someone you know, whats the harm. If you use it in competition or someone you don’t know in an arcade you’re not familiar with, well, my advise is to avoid dark alleys when you go home.