I think the point that is missed here is the Type II 'Logi Scout' fit, which only has 1 weapon slot. It sacrifices the side arm for another equipment slot. Then equipping and injector and rep gun, you've just turned yourself into a really fast (although thin) Logi, that is an asset to your team.

Using an SMG over an AR with this fit gives you several advantages.

-In CQ, if you are smart, you are going to win vs an AR in the majority of suits in that people are running around. This isn't how good 'you' are, this is Math.
-Faster reload than an AR
-With no AR, you typically won't put yourself in a position of hitting someone from range which often exposes you.
-You don't have the range limit of a Shotgun.

There will always be exceptions and fittings that can counter. But rare so far are the Type II's and B's that are so shield heavy that a well skilled SMG can't drain them. This is probably due to the Blueprint type 1's and the AUR A's that has most players armor heavy and slow at the moment. And the rules may change once people catch on to the fact That skilled FPSers in Shield suits are owning them and people actually start spending ISK on their suits.

The SMG kills fast and has, imo, the best ADS in the game. I wasn't a believer either until I took Ign's advice, actually skilled it, and used something other than the Toxin.

If you don't like it, or don't believe it, don't try it. But fact of the matter is there is a viable place for this build on the battle field and I love being in a squad with that build in the right hands.