Yeah, processed cheese is crap. It saddens me that a classic Philly cheesesteak uses Velveeta. Same goes for any prepackaged grated Parmesan. It's crap, and it smells like the stuff the janitor used to throw on a puddle of hurl when I was in junior high school.
Otherwise, it depends on the situation. On sandwiches, or burgers, I like slices of Cheddar, or Swiss, on a ham and cheese sandwich, especially. I also make cheese sandwiches pretty frequently for lunch, and again, it's Cheddar, Swiss, or provolone.
I do like American cheese for making grilled cheese sandwiches. That's the only time I use American cheese, and also, white bread. That's all sliced white bread good for, grilled cheese sandwiches. And I'll get the cheese from the deli counter, not the pre-packaged, individually-wrapped slices. That's not cheese.
On pasta, if I want grated Parmesan, I have a chunk that has got to be 20 years old at this point, hard as a rock, and no mold or spoilage. As it has continues to age, the flavor becomes more and more concentrated.
I also like to cheese to eat by itself, not in a sandwich,. I observe the Bavarian custom of a Brotzeit, with beer, bread, cheese, and sometimes some meat. Then I take Cheddar or Swiss (more properly, Emmentaler) again, for hard cheeses, or some Gouda or Edamer. I'll also have a soft cheese, like a Brie or a Camembert, to spread on a good rye or pumpernickel. And sometimes, I'll add a blue, like Stilton, again, to spread on bread (usually toasted).
Here are some examples, to give you an idea:
I have my own beer garden in the backyard. Life's too short.
Prost!
Brad