It's going to be lacking compared to other solutions, but there was still a lot of value you could get out of the Rift DK1, which had a similar dpi panel. Now, I do worry about how good the tracking will be, but it's a workable resolution. Less than ideal, naturally. But I played all the way through HL2 and Doom 3 on that panel.
That resolution seems a bit low to me. Even the vive has a pretty noticeable screen door effect. I just don't really get who would want this when you have a phone that can do VR better for likely cheaper. I'm wrong a lot about Nintendo though. I thought Switch wasn't going to be so successful for the same reasons, people have phones with better specs, and I was quite wrong about that.