Personally I always set my observing system to local time without daylight saving. However I know others allow daylight saving and some people use UTC. I've even heard of people working remotely who use the time at their home location rather than the observatory site.
Obviously it doesn't affect pointing or tracking directly as Autoslew makes the adjustments, but there are practical concerns.
What are the pros and cons of the different time settings - just gathering thoughts for a FAQ article on the Wiki.