I use for lots of things, it's a great make up remover to boot. I'm leery of eating too much of it as it's a medium-chain triglyceride and for some people (not all), it plays havoc on their blood cholesterol. It must be the way some people metabolize it. I make soap and coconut oil is about 25% of my recipe (it makes for a soap with nice big bubbles, on top of being moisturizing).
I've never had any go rancid, so there's definitely something wrong if you have a batch do that. I have some that I use strictly for my soap and have been hacking away at that block for years and it still has no smell (just nice and clean).