I find Navy Flake tastes best about a week after I open a tin, it needs some oxygen for some reason.
As to smoking it, I never got along much with the fold-n-stuff method, found it left me relighting a lot and working hard, so I just take a flake or two and bust it up into chunks, and kind of loosely fill the pipe.
If you over heat it or work hard to find the flavor, it will disappoint, but if you can get it simmering just right, it's really nice stuff.