We've been doing it for 35 years. Family is all incredibly healthy, except for the one who did some internal damage to nerves while on some crazy exercise routine.
That's the grossly undeserved reputation powdered milk has. I've stored powdered milk for 35 years and admittedly threw away quite a bit the first 20 years. However, the past seven years have included a lot of research on this topic.
Taste varies by manufacturer.
There are many tweaks for improving the flavor. The best flavor varies from one person to the next, even within families. We did several blind taste tests with various manufacturers and various tweaks. In a family of eight (including in-laws now), most everyone had a different favorite. DH liked one that used honey. I loved the one using powdered (pasteurized!) eggs. (Yeah, that was a shocker.) Just as shocking--that nonfat powdered milk was made to taste just like whole milk to me.
Even if you don't want to use it for drinking, that powdered milk can be used to make cream of chicken/mushroom/celery/tomato soups. It makes fantastic yogurt, even Greek yogurt, and cream cheese. Pudding. No-bake cheesecake. Sweetened condensed milk. Evaporated milk. Use it in baking bread. Hot chocolate mix. The list goes on.
I use it to feed my family every day. And I have among my children both the King and the Queen of the Picky Eaters. And their dad.
You can read all about it on my blog for free (use the search bar on the right) or in my book on the topic (where everything is nicely organized).
Prep School Daily
Good Eats at the TEOTWAWKI Cafe, Using Powdered Milk