My thoughts behind going for Cute charm is because most of the opposing pokemon i face tend to be males, Sure its only a 30% chance to do it upon contact but my theory is, Milotic is a Special Defense tanker, how do you beat a Spec def tanker? With physical moves! so in actual fact Cute charm to me sounds like a pretty useful choice because as i said, while marvel scale is good with sleep talk and rest you need to be constantly Burned which halves your attack (granted only physical) but chips away at your HP and you also run the risk of dying from the burn if your opponent gets a crit or something like a flinch where you can't use rest.
My next thought was if i go generic Milotic with rest and sleep talk everyone will expect that, plus having rest AND sleep talk basically takes up two moves and leave your attacks to chance. With something like recover its one move that guarantees half your HP back with no downsides, leaving you with an extra move to play with.
What i want Milotic to do is cause complete mayhem, It'll run Thunder wave for Parahax and then if i'm against a male physical thats even more likely never to be able to attack if it gets infatuated as it'll be 50% from love and 25% from Para, combine this with confuse ray.....you get the picture. It may not be the best Ability to have on it for competitive, but i'm one of those trainers that likes to buck the trend and try something a little different.
You should for sure add me to your friends list as i'd love to battle with you and Phantom whenever your not breeding. I'm sure i can perhaps give you a challenge in the way i battle.