This discussion was brought up somewhere else, and a guy who worked at KFC said that they do not use any milk in their coleslaw (he said other things give it the milky looking dressing). These are the same recipes you will find at the knock-off sites and books.
If KFC is cooked properly it can be very good. It needs to be dropped at the right temperature so the breading doesn't absorb too much oil. I think the problem lies with poorly trained/paid/managed staff who just literaly throw the chicken in the pressure fryers and close the lid.
I cooked it for a few years back in the '70's and you are supposed to wait for the oil to reach a certain temp before browning, let it fry for a certain time before closing the lid, then releasing the pressure and pulling the chicken up in a certain amount of time. All of these steps are designed to produce a decent quality product, but like most restaurants, the food is only as good as the people cooking it.
The main problem, other than too salty is that if you buy it and take it home with you, the steaming that goes on in the container makes the breading less than as crispy as I like it, and also brings out the grease. YUK.