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Does anyone use them and more importantly, do they ever perform well? It seems like a novelty unit but who knkows, maybe it has some significance that I'm not aware of.

More of novelty than anything else. They can quickly become a very expensive unit that dies easily and doesnt give you much more combat effectiveness than a squad of terminators or berzerkers. If you are going to take chosen at all go for more shooting than combat.

Infiltrating rules are pretty strict.
So combat is not a likely thing...for about... 2-3 turns.

Otherwise, you have the options of Termies, Zerkers, CSM that have roughly the same engagement time, are more economical, scoring, or both.

The special weapon spam is so much nicer due to the reach on the weapons coupled with outflanking in a rhino.
Regular Infiltrating is IMO a weak option.

Thats about what I thought. It seems like it could be useful but it much the same way Codex Vanguard are just too expensive to do the same job as other better options, these guys look like they'd be better to leave on the shelves.

Infiltrate can sometimes be worth the points. Example from last sundays 6K group game. CSM & IG versus DA with three players a side. Objective game with Pitched battle.

DA went second and deployed 5 various Bike units across their side of the board. 30+ Deathwing Terminators waiting in Reserve for Deep Strikes. By infiltrating a single squad of Chosen inside a ruin in the middle of the board, the Chaos side managed to prevent optimal Scout movements. Consequently the Loyalist terminators had to either A) land on the beacons far away from enemy lines or B) take a risk and DS unaided.

The best way to use chosen imo is to go the route of the 5xSpecial weapons I haven't found much other use for them and I feel the rino is a must always but I run a rino rush

Yeah what sanctjud said is a very good option but i have toyed around and got mixed results with the PW option pyrus suggested. Chosen are definitely better with special weapons i just have a hard time bringing myself to spend that many points on a squad that regular CSMs can do just as well. I already spend enough points as it is playing 1k sons!