I've seen more than one homebrew online supplier describe the stuff as having "a color and taste true to it's name", but I would never go so far as to say that chocolate malt actually tasted like chocolate.
Unless you they meant that it tasted like unsweetened cocoa... I can kind of see the similarity (bitterness).
how much chocolate flavor you get depends on how much you use. it definitely has some chocolate like flavors, but if you see a recipe calling for a 1/4 lb. or so its probably to darken it. example: i used about a 1/4 lb. in my mild ale, steeped it for 15 minutes just to give the beer its dark color.
Like cocoa powder, it needs a little sweetness to bring the chocolate flavors out. I use 1/2 lb in my Church of Chocolate Brown, 20 grams of lactose and a couple drops of vanilla.