I personally feel that setting a non cleared altitude of the SID, esp if it's higher set on the MCP than what the initial restrictions say on the chart, we re basically leaving the job of level off to the Fmc VNAV.
Should a FMC fail during climb/ level off , one has to remember to reset back to the clearance altitude to avoid the alt bust, not to mention the additional shock of the fmc failing and possible deviation of the lateral track, airplane accelerating/ cleaning up, high workload after takeoff scenario maybe negotiating little wx. And then going to a territory not allowed which can trigger an RA.
As much I would like to rely on the Fmc to have me level off lower, I may forget/overlook and get busy with something else. Also if there is a level bust for any other reason, ATC is gonna focus on 'what was set on MCP'
So situationally I would decide what altitude to be set, depending on which airspace I am in, wx conditions, traffic density, level off alt.
I have seen many FMC vnav alt bust by about 150' during a low alt level off with A/P which made me think a basic mode could HV been better athan times.