Personally I think nylon insulated terminals are utter garbage. I'd much rather use heat shrink and uninsulated terminals. Overkill? Maybe, but my usual wiring projects are NASCAR race cars and I can't afford to have a failure that costs someone a race.
On my arcade projects, I won't go as far as I do on a race harness, but I'd rather solder the bare wires to the switch tabs than use nylon insulated terminals.