When to use a sequence in F# as opposed to a list?

I think your summary for when to choose Seq is pretty good. Here are some additional points:

• Use Seq by default when writing functions, because then they work with any .NET collection
• Use Seq if you need advanced functions like Seq.windowed or Seq.pairwise

I think choosing Seq by default is the best option, so when would I choose different type?

• Use List when you need recursive processing using the head::tail patterns
  (to implement some functionality that’s not available in standard library)

• Use List when you need a simple immutable data structure that you can build step-by-step
  (for example, if you need to process the list on one thread – to show some statistics – and concurrently continue building the list on another thread as you receive more values i.e. from a network service)

• Use List when you work with short lists – list is the best data structure to use if the value often represents an empty list, because it is very efficient in that scenario

• Use Array when you need large collections of value types
  (arrays store data in a flat memory block, so they are more memory efficient in this case)

• Use Array when you need random access or more performance (and cache locality)