Chocolate with chocolate whipped milk?! I don't remember that at all. I really have to arrange a visit now.
Milky also comes in Mocha flavor and you can get Chocolate w/ whipped chocolate milk. Personally, I prefer vanilla and vanilla/chocolate swirl Karlo.
I never ate krembos either. But the kids devour them. It always used to make me laugh seeing the kids on their way home from school, each one with a dot of "krem" on the tip of his nose -- the telltale sign of having just finished a krembo.
I'm amazed at everything you've written about Tiv Ta'am and all the luscious photos, particularly those cheeses. (I remember when the only thing you could get was "gveena tsehuba" -- yellow cheese, it was all encompassing.) I'm a former Yerushalmit, and, as you can imagine, we never saw that kinda stuff! Although maybe now they do. (By way of explanation, Jerusalem is a lot more strict on religious issues than lawless, heathen Tel Aviv and its environs.
When I moved to Israel 26 years ago, most supermarkets carried one kind of cottage cheese (which in my opinion is still the best cottage cheese anywhere in the world), one kind of low-fat white cheese, and perhaps three kinds of packaged yellow cheese. All, of course, from what used to be the national dairy product monopoly, Tnuva ("milk churn"). Since then, Tnuva's monopoly has gradually been broken by companies such as Strauss and Yotvata, and a whole host of boutique cheese and yogurt makers. We've been up to a tiny village in the north of the country, Klil, which is almost impossible to find, and where there are a couple of boutique dairies that make incredible goat cheeses, including camemberts that rival anything I've bought from France.
As for the religious issue, the truth is that most of these producers make sure to keep kosher, so you can find their products in Jerusalem too. To the extent that the selection is more limited, it's only because Jerusalem is much less prosperous than Tel Aviv and its surrounding towns in the coastal plain.