You can question whether or not this is really cheese, after all, the package never says that it is cheese (though it does say it Melts better and has 1/3 less fat than Cheddar Cheese). The first thing you will notice is that it is much softer than regular cheese, even softer than blocks of cream cheese. And it is lighter colored. And it doesn't really taste like cheese. I think it is wrong to compare it with cheese, since you can do stuff with it that you can't do with cheese, like it melts really well. If you compare it to a jar of nacho cheese or the powdered cheese you get in Mac & Cheese, it comes out much more favorably.
I recently bought a big block and made nacho cheese dip. I cut the cheese into chunks and dropped it in a small crock pot with salsa (you can also microwave it) It came out pretty well, and if I made cheese dip again I would probably use Velveta. As an aside, you can overheat the stuff and it gets lumpy.