I panic bomb like mad, since I forced myself onto Hard when I had never played Touhou before, and have never gone down, save for SA.
But looking back, half the attacks I panic bomb, I can cap. I usually can't cap half of Chen's Stage 2 cards, due to p-bombing, but if I don't bomb, I can cap them. This ends up getting me to Stage 3 before having to Continue. But wether I panic bomb or not, well, it's basicly random.