Like all compact or pocket tools, this one must make a couple compromises in order to remain small and lightweight enough to be carried around when biking, hiking, camping or the like. Keeping this in mind, in can come in handy when there are rusty nails to tear out of wood or a thorn out of a dog's paw, when a tent needs to be erected, and so on. Pocket knives do not provide the respective functionality, so this is a nice complement for them.
It goes without saying that for the low price, a couple compromises had to be made. If Victorinox ever created such a tool, it would probably be made of harder but still lighter material, for instance. On the other hand, an axe or hammer that is too light does not make much sense -- there is a trade-off for everything in life.
Is this comparable to a real axe with a longer handle or a full-size hammer made from premium steel for construction use? Not at all. Is it good to have and better than nothing for its price when being outside on a trip to mother nature? Yes.