I would be interested in hearing about other people's experiences generating and displaying first-return canopy surface DSM's.
I have been trying a number of methods and have been fairly pleased with this:
LAS to Multipoint (selecting first return only and average spacing from LAS metadata), then
Point to Raster (for metro-area tiles I have gone as low as 1-Meter cell size), then
One round of Post-processing the raster to remove some of the NoValue cells (focal mean) using Raster Calculator
Finally, generating a hillshade and displaying it with bilinear interpolation.
There appears to be a tradeoff between increased resolution and increased No Value cells. Have other people been achieving good canopy representations using different techniques?
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