In my opinion, no pre-shading is needed in 1:350 or 1:700 scale. The panel lines are just so small/fine they are not visible. Scale viewing distance is important on things like panel lines. You are looking at the ship models from a scale viewing distance of 500 to 1000 feet!
I sometimes build scratchbuilt ships at 1:96 and 1:192, and you see the panels in those scales, but since many of the joints are overlaps, I find actual overlap (usually by sheet cardboard or thin styrene works much better than anything done with pre-shading.