I play that "Minnesota 8/16 half kill" game fair amount too
. I think a lot of the decision of whether to fold, smooth call or 3 bet has a lot to do with their impression of you too. Do you want to smooth call and build a big pot or 3 bet and try to limit the field? If people see you splashing, a 3 bet could just as likely bring a cap need to show down a winner vs limiting the field.
Some (action junkies) use the leg up to play inferior hands. We all know how stupid this is. However, I will rarely fold a hand that I wouldn't normally play just because I have the leg up. The only exception might be smaller pairs in a thin field where I am not likely to win a big pot before the kill hand.