I tried it several times in the past as I've slowly tried to ween myself off dairy, but thought it tasted terrible. Like a grainy, musty powder. Then I went about a month without cheese (yay, me) and decided it was time to experiment again.
So this morning I had an omelet, with salsa & onion inside (all we had in the fridge), and sprinkled a tablespoon of nutritional yeast inside as well. I was pleasantly surprised. It does have a slight cheese taste, but if you've been eating real cheese regularly, you won't notice it.
Adding to to a hot and liquidy medium (in this case, warm salsa) worked much better than sprinkling it dry on something (like popcorn or veggies). It gave the salsa a creamy, cheesy texture, which worked well with the omelet.