In my opinion, after is better, but I might be wrong. And calculation is faster after simplifying.
Any other opinions?
I think you want as many data/points as you get for merging. This would lead to more precise overlapping of models. Then you can go through and clean up overlap. I usually do not simplify in the point cloud, but rather wait until the mesh step.
All of this depends on what the purpose of your scan is. Trying to capture as much detail as possible is a different workflow than trying to produce a smooth looking scan.
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As @PUTV once said:
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Hi Daniel , as everyone else already said , never simplify fused point cloud , by doing it you are downgrading the accuracy and not just resolution .
Fuse it , mesh it and then simplify it after for best results , you will keep great details and low size of your model.