Mods: Don't merge this with 'Outlook Calendar integration showing time of event and not just the day,'. The only similarity that they have is that they deal with the calendar publishing functionality.
When importing a sheet calendar into Outlook an event shows the user as 'Busy' all day and shades the rest of the calendar in that color.
It would be good to allow the user to select the default availability for the calendar when creating the link.
If this isn't possible, then setting the default availability for these calendars to 'Free' would avoid this.
See the below example. The pink calendar is the Smartsheet calendar, the blue is my work calendar.