There are 6 or 7 ways that it is recommended to fish it, but I have used just 3 methods. Quite a few hits come on the fall, but once it has reached bottom, I initially tried swimming it slowly along the bottom, kind of like slow rolling a spinnerbait. I didn't have much success with that. I also did the lift & glide retrieve, where once it had settled, I would lift it a foot or so off the bottom & let it glide towards the boat. For my lake & conditions, this was unsuccessful for me as well. What has been lights out for me was been as you mentioned, bouncy it slowly back kind of like a shakey head. When I watched that retrieve in shallow water, it really looked like a small minnow or fry feeding on the bottom, which is a good fit for my current conditions. I'd highly recommend you experiment with different retrieves, the fish will definitely tell you when you are using the right one.
I followed the advice of Bluebasser & Team9nine when choosing the jighead, a mushroom shaped one weighing 1/16 oz. The only reason I chose the BPS mushroom jigs over the Zman ones was they had a choice of hook sizes, 1/0 & 1. I have used the size 1 and had almost no lost fish. Most of the hooksets are deep (not swallowed), only a few in the lip. In fact it is kind of weird, I get more gut hooked fish on wacky rigged senkos than the Ned rig. It is as if they try to swallow the larger baits as fast as possible, but with the Ned rig, they swim around content to just keep the whole thing inside their mouth. Maybe since the small size allows them to engulf the entire rig, they don't feel the need to have to get it down their gullet so quick.
I have used small grubs as well, usually curly tail models & swam them along with decent results. For me, in the limited time I have used it, the Ned rig has produced more fish each trip than a grub ever did. It may just be my lake, but I feel when fished in a manner that the fish want, it is a very accurate & slow presentation, resulting in reaction, defensive & feeding strikes. As far as it being the flavor of the month, from what I have read, it has been a staple in the midwest for years.
I promise to post the first time any other bait outproduces the Ned rig on a future day of fishing. My bet that day will be a sunny, warm summer day when most of the fish are tucked way back under docks. I can skip the Ned rig under the docks, but enjoy and am better with skipping wacky rigged senkos. I may have to handicap Ned with fewer casts to allow another bait to pass him in catch totals