To my mind, the costs of litigation and of fighting are so high – that I really can’t imagine deciding that I would rather fight than settle. But I guess it mainly depends on how the conflict is framed – whether you feel that there is an important principle at stake.
If you’re going to fight about something having to do with the children, they will know that you are fighting in court, and they will know that one parent thinks the other is screwing them over (or both parents think the other is screwing them over) and they will feel pulled-apart and tormented and guilty, over being the subject of the parents’ conflict.