I haven't tried ZOE yet. "Damage increased over the previous level" isn't telling me enough to cert into it. How much is damage increased?
Only get the first level of ZOE unless you plan on pulling comets a lot. The place where the damage buff shines is in AV and AA but playing AI that damage penalty will get you owned and it is better to only have level 1 for the speed boost and minor damage increases.
The damage penalty is the same on the 5 levels, if you're going to use it there's no reason not to max it.
I run dual Comets a lot on mine for an all around solid option. They're not as good as dedicated AI in close range against multiple enemies at once but they're great at mid range or against one or two people at a time assuming you can aim. Also, I put the fear of god into enemy MAX's. Specially NC. Gotta get my use of of em before they get nerfed
ZOE is all about mobility. They can remove the damage part and I very much doubt anyone would notice.