I think it's tasty, especially good with fish sticks.
On the drying note, obviously when you take apart a CPU/HSF and find dried compound, if you were to put it back together like that it wouldn't work worth a damn, probably worse than bare surfaces. But then we all reapply anyway so that's a nonissue. Has it been shown that dried out compound does not cool as well?
I ask this because while it may seem like a "Duh, of course not" answer, look at ASII. It's got silver particles in a fluid carrier. Assuming you could extract the fluid and have nothing left but a bunch of little silver molecules all touching each other, it'd work just as well, right? However it's impractical to apply silver dust so a fluid form is much handier. Also, the carrier provides some lubricative effect when the heatsink shifts (during installation, drops off buildings, etc) to help minimize clumping.
The only dried out compound I've had personal experience with was with an old K5-133. Had some crap HSF on top, a layer of compound, a piece of foil, another layer of compound - all dried out. Now, no, those didn't make much heat at all. But (at least mine) is fairly heat sensitive. I scraped off all the old dried compound, removed the foil (don't know what it was doing in there) and thought "what the hell, couldn't have been doing anything all dried like that anyway, must not need it" and put it back together with the bare sink. Locked up shortly after and continued doing that until I put it back together properly. So I've seen first hand dried stuff is still doing -something-, what I don't know is how much the efficiency drops off if it does.
--Mc