I've been using neem oil for scalp eczema. I used to have an extremely dry, flaky and painful scalp. My scalp is completely better now. It's the only treatment that has worked for me.
I've noticed that my hair is a bit softer too, although I'm not sure if it's the neem.
I agree that neem oil has an odd smell, but the benefits are worth it. Mine is already diluted, so I don't. But I know some people put lavender oil or tea tree oil in it to mask the scent.