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Upon buying the Lizardmen army book, I instantly dismissed these guys - 15 points per model generally smacks of overpricedness.
However, the more games I play, the more I'm seeing how they could actually be pretty devastating.
Firstly, I often run my 3 Terradons for the purpose of character hunting/artillery abuse. Since I noticed (duh me) that Chameleon Skinks come in minimum units of 5 and not 10, and then realised I could have 7 of them for the same points as 3 Terradons, I'm starting to wonder why I should bother taking the Terradons at all, especially since I'm playing against a lot of artillery heavy armies atm.
Secondly, working out the averages on BS 4, their average number of kills against standard troops is pretty insane. 7 Camo Skinks shooting at base to hit versus, say, a unit of men with light armour and shields, kills 4ish on average per turn. That's a turn one panic test against small units, and with a bit more luck is a turn one panic test against 20 or even 25 man units. Against unarmoured targets, it's going to be harsh.
Thirdly, of course, they do all of the usual scouty stuff such as march blocking, but since I'd never used scouts until I started using Lizardmen I didn't realise how hugely restricted scout deployment is against a decent player. Chameleon Skink deployment on the other hand, when done right, must surely make them amazingly difficult to deal with without some serious disarray to your battle plan.
Fourth...it's the only unit I don't own yet, and they're skinks with bandanas! Cool!
I haven't seen many lists (any that I can remember off the top of my head) in the army list section including these guys. They seem like they should work wonders.
My main adversary is a skaven player. Skaven has LOTS of units on the board. Sevel of them are skirmishers, with 360 line of sight...
I used to play skinks as scouts, but I found that I was rarely able to deploy the scouts in a good location. In some battles I was unable to deply them as scouts at all, as there were no locations on the battlefield where he could not see me.
I love the Chameleon, I usaly mange to take out a wizard (or ratling gun) before they are killed...
Chameleons are often dismissed by new players but the truth is that they are fantastic for all the reasons you've mentioned.
People often get carried away with the shiny OMFGSTRENGTH7!!1!!!1!