So I decided to take Competitive Milotic for a spin because a team I was building would have been rather Ground-weak if I used Bisharp. I must say, it was better than I thought it would be. Is it fantastic? Not really. It's not that powerful at all if you can't get the Competitive boost, so I found it wasn't that useful against teams without Defog and/or Sticky Web; Bisharp, on the other hand, is useful regardless of whether or not your opponent runs Defog/Sticky Web. However, once it got that Competitive boost (which wasn't really what I'd call difficult, it's not like Defog is uncommon and switching in on Sticky Web is like getting a Speed-dropping Nasty Plot just for switching in) it fucking went to town... And I may have pissed my pants from laughing my ass off once, but I digress.
But anyway, with the Competitive boost, just about nothing can switch in on a Hydro Pump, and you've got coverage for the few things that can actually stomach one (except for Gyarados, except Intimidate variants won't come in on Milotic as that would trigger Competitive.) I was running maximum Speed and Timid on mine, but I can see the argument behind both max HP Modest and max Speed Timid. Max Speed Timid allowed Milotic to outrun any Dragonite, any Mamoswine (except for Scarf or something, but does anyone actually use that?), most Rotom-W, Jolly Tyranitar, and most Gliscor (especially ones running Defog.) However, max HP Modest would take hits better and would function better against teams using Sticky Web. I would probably lean towards running maximum Speed and a Timid Nature for the Pokemon myself and others have mentioned, but I can see the argument behind running more bulk.
Q&A time!
Is Milotic fantastic? No.
Would you use Milotic over Bisharp? Only if Bisharp would be worse on the team (i.e. if running Bisharp would make the team Ground weak but running Milotic wouldn't)
Does Milotic have a niche? Absolutely. In particular, it has a better defensive typing than Bisharp and, thanks to Recover, can potentially last a longer time. Now, if Milotic were a Dark/Steel-type Pokemon then I'd have a harder time justifying its use over Bisharp, but that's not the case. Milotic and Bisharp are both Pokemon that can punish your opponent for using Defog and can take advantage of Sticky Web if it's up. The similarities end there. Milotic is entirely different with regards to team synergy than Bisharp, with regards to both defensive synergy and offensive synergy. There absolutely will be teams that Milotic would fit on better than Bisharp because of how wildly different they are with regards to team synergy.
Just my two cents on the matter. I'm not QC, so it's not my call on what Milotic's analysis should look like, or even if it gets an analysis at all, but I just thought I'd give my thoughts on Milotic after testing it. I'll be honest, I thought it was going to suck big-time, but then I actually tested it and while it isn't amazing, I really can't say it sucks. While providing logs should be the OP's job, I would be willing to get logs of Milotic in action if requested.
Edit: lol, typos