Oh it's fine, and I really think anyone who thinks it's outrageous doesn't understand nutrition. OK it is not the most glowingly healthy breakfast in the world perhaps, especially for an adult. But active children do need energy they need fat and sugar, and most breakfasts certainly reflect that. Toast with butter/marg, jam/honey = cereal, fat and sugar. Yoghurt with honey, or any commercial yoghurt which is packed with sugar = sugar. Just about any commercial breakfast cereal, even the ones not aimed at kids = full of sugar. Formula for breakfast for your baby - or even breastmilk? Full of fat and sugar!
Yes we probably need to eat less sugar, but pointing the finger at something chocolatey and saying that's somehow uniquely bad is just inaccurate. There's nothing especially unhealthy about chocolate in small amounts - so chocolate spread is no worse than any other sugar-containing product. This is just an illusion brought about by the fact tha our culture sees chocolate as something special and sinful. But I'd rather give DS some nutella than something full of artificial sweeteners and weird preservatives and colours. My jar of nutella contians just 6 ingredients, almost all natural and straightforward.
We don't actually have it for breakfast often, but I see no reason why not, if you are prepared to eat jam, butter, cereal etc. And I have just had some on a muffin to celebrate this thread.