Thank you for your feedback.
I've experimented with camera smoothing a little. After playing with it for some time, I don't really think it works right with the pace of the game.
So I don't think I'm going to use camera smoothing. I'll probably leave an option to turn it on somewhere in the config file though (no promises).
Thanks for the demonstration! Yeah, getting the camera to feel right is a most finicky task. I wouldn't give up on it entirely, though; the camera slightly lagging behind the short-distance-teleportation looks great, in my opinion!
Another camera thing I really like in general is centering the camera on an arbitrary point between player character and current/nearest target. Also slight screen shake for high damage hits- the options are endless 😍