To answer the question first you can assume that you can cause the animation to blend no matter the random nature of the state change.
For example sync groups and markers is a recent addition that you can track the current position of the left and right foot position so that when going from a run state to an idle Unreal will blend the transition for you with out having to tell the state machine to exit at X percentage so that the change does not cause the animation to pop if in a right extreme pose.
Montages is a good solution however the nature of the montage is it will fire and play to completion unless a different montage is triggered, using the same slot, or told to stop using the montage stop node.
As stated Unreal engine is component based on it’s approach, more so as to blueprint development, where you can build a need by adding to the mix. For example you do not need a sound event added to a montage as you can add the sound file directly to the time line of the animation sequence.
If the question “is the use of a state machine” the best option then my opinion is still no due to the limitations as to practical use with out a better understanding of the context the design path needs to serve. As mentioned the montage would be a better option base on the choice between the two option.
For example
State machines are very good at adding pulse generated state changes like locomotion where as long as as you hold a key, say W to move forward, and exit the state it either defaults to idle or changes to a different state like if S is pressed and the player moves backwards.
The problem with state machines is to maintain the blend of say the player speaking dialogue, or another type of action state like reloading a weapon, you will need to included the action state into the migration pathway. Once again state machines are very good at maintaining sequenced state changes but does not work well at all as to the addition to action state changes ,via montage, as in most case you need to fire and forget beyond stopping the action based on demand.
The montage makes for a better option as you can add to the component based on the need to blend individual action state like dialogue, talking animation, uing one of many different blending mods a to the idea of animation layering.
Check out Layered Blend per Bone
A to good better best once again it’s about context of what the design is required to do in it’s completed form. If I tell you I need a motor vehicle the required information is limited to “making it work” as compared to the context of what is need is a F1 race car or a dump truck