I use it almost everyday.
I've used it to imbed knowledge into catalog parts and our own structure package.
I've tied the bill of material parameters to the parameters that drive the size of parts so it's always a one to one match.
You can use it to remind designers of standards.
Very powerful stuff.
I am the person who is involved in industrialization and testing of "CATIA Knowledgeware". Before suggesting any enhancement in software I need to have the clear goal and use of the product (Knowledgeware). In same context I can give you number of examples where Knowledgeware is the best solution for the ease, optimization, cost effectiveness, multi-solution and tracking of design
You can use Knowledgeware
1. Where you want the best-suited permutation and combination of the available part in a big assembly
2. Where you want every standard must get reminded to the designer
3. Where you want limits of the design, material used, manufacturing feasibility must get reminded to designer for a small change in design
4. With Knowledgeware you can set the Rule and Equations with that one can interlink the components and their behaviour associated in a big assembly
5. Its can be used in Aerospace, Automobile, Jig and fixture design, lock and keys design, Gear technology, Container and packaging industry, Industrial automation work.
These are very few examples and use of Knowledgeware
Hope you got some idea about the usage of Knowledgeware. I agree to punk "its really a powerful stuff". Every day its challenge my thinking to use it in some different process and technology. Thanks