Absolutely! Many experts have used it many times, and continue to do so. Even many color belt students have successfully defended themselves in dangerous situations before even becoming experts. The thing to remember is that part of your Taekwondo training is about learning the basics in segments, then putting it together as a whole. The higher rank you become, the more time should be spend on reality training with pads and heavy contact (with the safety of your partners in mind), and re-creating real-life scenarios.
Too many advance Taekwondo students do not make this complete transition. They have good technical knowledge, but fail to convert it into street application under stress, and pressure of fighting someone who does not fight like them. Street fighters fight dirty, and do not follow any rules, therefore in order to win the fight in the street and survive, a Taekwondoist must be ready to apply the correct techniques in an aggressive and adaptable way that does not fit the mold of forms, one-steps, or free sparring under restrictive rules.
You do learn to defend yourself, but remember that one of the goals of TaeKwon Do is to defend yourself to the point that you can live for another day.
The best thing is not to get yourself in a bad situation that would require physical force. If you can't avoid it, use what you have been taught, and if that doesn't work, use whatever comes to mind to end the situation.
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Yes, Olympic taekwondo can be used for self defense, but it is generally better to fight dirty when you're defending your life. You don't need to follow Olympic rules when your opponent isn't trying to score points. For example, a side kick to the knee would be illegal in the ring, but it one of the better ways to break your attackers leg, making it much easier to run away.
NO...
karate helps you have way more power and tae kwon do is slower not as strong