John Ralston Saul, complaining about deliberately disjointed styles, noted that Ford Maddox Ford used it to marvellous effect to show the incipient chaos of the post-WWI world. And you're right about Lovecraft using it for horror.

I agree that the novelist has a task of translation. But it does raise a curious point. Faulkner's characters' streams of consciousness don't resemble my own thought processes, so is it an accurate portrayal of Faulkner's though processes, or a contrivance that isn't even interesting?

Probably more of interest to Oliver Sachs, though, than a study of literature.