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Just picked up this tech in my latest game (playing the Quanemo on a 1000 star map.) What does it do, exactly? The component guide states it gives 800 cloaking strength which means...what? This is entirely seperate from ECM systems, near as I can tell.

Do I want this on my warships? There's no submarine or raiding type ship mission in this game, so I'm not clear what this system is for. (And you know what, maybe there ought to be such a mission class.)

The Galactopedia is your friend.
 
Stealth components minimize a ships visibility, allowing it to evade detection – particularly at long range.
Note that stealth components do NOT make a ship completely invisible. They simply reduce its detectability by enemy sensors.
Each stealth component has a rating specifying its level of stealth cloaking. This rating is matched to the size of the ship that uses the component. The distance that the ship becomes visible to enemy sensors can then be calculated.
When a stealth component rating exactly equals the size of the ship then the ship’s actual stealth cloaking is 50%. This means that the ship will become visible to enemy sensors at 50% of the range that an uncloaked ship is visible.
When the stealth component rating is higher than the ship size then the ship’s actual stealth cloaking improves. For example if the stealth component has a rating of 500 and the ship size is 250 then the ship’s actual stealth cloaking is 25% (it becomes visible to enemy sensors at 25% of the normal range).
The formula for calculating a ship’s actual stealth cloaking is as follows:
Visibility Range = (stealth rating / ship size) x 50%[/i]
Only one stealth component is required to provide benefits – additional components do not provide cumulative effects.