I actually see a much greater application with the cloak than you give it credit for.

The fact that the cloak doesn't let you attack while cloaked is a non-issue for anyone who is a veteran scout who knows what he/she is doing. Veteran scouts will just find a way to make the mechanic work for them somehow. We're pretty smart, you know. I mean think about it. We scouts had to learn to become experts in a class that is so underpowered that we had to fight through each match with one hand tied behind our backs while suffering a severe case of tunnel vision while wearing a suit that has so little armor that a simple breeze can one-hit-kill us. Just stare at us for two seconds and we're down for the count. Yeah, we had to work like that under the current mechanics.

But guess what. We pulled through. Those of us that had to endure this level of torture for almost a year have become experts at using these suits to our full advantage and able to pull out KDRs like never before thanks to the hell we had to train through. So if we're this good at this point in 1.7, imagine how fearsome we can be once we have the new scout buffs and cloak in 1.8. Veteran scouts will rejoice.

As for practical applications for the cloak, I can think of a few situations that a cloak can help in.

1. Positioning behind the enemy unseen.
2. Scouting for weaknesses in the enemy unit.
3. Employing a series of guerrilla tactics involving hit-n-run, cat-n-mouse, etc. Generally harassing the opposition.
4. Running up to a straggling lone target without being spotted by the lone target along the way.
5. Sneaking up behind enemy tanks, decloak, quickly plant REs, detonate, run and recloak.
6. Avoiding murder taxis and blaster-fitted tanks.
7. Camping objectives (best used with a Gal Scout fitted with range amps).
8. Climbing up ladders safely.

There you go. Cloaks will be useful for far more than just running through a 100m open area.

Is it sad that 8 is the one I'm most excited for?

My PROTO scouts is already under PROTO gal logi scans without the cloak lol.

Not me, not while I am less visible.

Right- the cloak is going to free you up to fit a variety of other things, be it armor or biotics, while still being able to cloak your way under scans when you decide to. That way, when you do get spotted, either through super GalLogi scans or visuals, you're not as boned. It lets you be an assault with a big stealth button, and that's why I'm rolling scout in 1.8 and why scouts are going to basically replace assault suits (IMO).

Well obviously they're not exactly the same. As someone who plays a lot of lone-wolf assault, though, I would gladly trade some base HP for a cloak. The bulk of most suits' health is in modules anyway, and the smaller hitbox provides a bigger survivability boost than many give it credit for.

The effect you will see if you look at a cloaked merc (all suites with enough PG/CPU can fitt them) will be something like this:
http://youtu.be/EFkXc5nGct4