Does Paprika extract actually taste of Paprika?
There are two types of paprika extracts; one, as you mention, is mainly a food colour. I understand this is made from raw, unsmoked paprika. It has no real flavour.

The other is mostly a smoke flavour. I believe it's taken from the smoked paprika leftovers, not from the raw paprika.

Neither is any good for simulating the colour, texture, and taste of paprika.

There are also many types of paprika, each having a different level of spice, colour, oil, and smoke. It is just a question of taste and culture to which one you like. So getting an extract to match what you think paprika is, is also difficult.