The cheese melts faster. But I've def had better grilled cheese with, like, provolone.

I think there is such a thing as fancy American cheese that actually tastes good, but I've never seen it or tasted it.

That's actually correct, and a lot of people like to give American cheese grief because it comes individually sliced and packaged in plastic, but in reality it's just cheddar that has been reconstituted with extra milk. It can still be very high quality, with a uniquely creamy texture that is unmatched for a hot ham and cheese, or melting onto a burger.

Its a different dish. American cheese is very melty but unless you go for some specialty shit or do some kitchen chemistry, its a very uncomplex cheese. It'll taste like a blend of mild cheeses, predominantly unaged cheddar. That's sometimes good, but one of cheese's best features as a food is that it's got a wide range of deeper flavors available. For the cozy familiar dish you go with the cozy familiar version. But those of us who love the depths of cheese and don't have that craving, we often prefer more fancy cheese blends

that is true. normal sliced american cheese melts better than cheddar or other real cheese.

the cheap individually-wrapped 'singles' melt even easier.. like velveeta does.