Custom events in Web Components should be used for:
1. Component communication:
- Notify parent components of changes
- Handle user interactions
- Manage component state
2. Shadow DOM integration:
- Cross boundary communication
- Event composition
- Encapsulation management
3. Component lifecycle:
- Initialization events
- Cleanup notification
- State change broadcasts
4. API design:
- Consistent event naming
- Proper event documentation
- Clear event contracts