Must be placebo. Just logged in my level 35 rogue to test and landed an Intimidation on the first dark blue (lvl 32 mob) that I fought.
If the game isn't letting you know that 'you're not scaring anybody' its more than likely your hotkey itself is bugged and you should make sure to remake an intimidation button from your action window (Ctrl+C).
PS- if your skill isn't near the cap for your level, it will be less effective than the latter. Low skill intim feels like absolute horse shit, but when its capped for the level it feels genuinely good in my experience.
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