The lens is of adequate quality. It's a f/2.8 5/4 lens which is much more sophisticated, at least in terms of production cost involved, than the very cheap, sometimes even fixed aperture and focus 3/3 lenses found on many Japanese point & shoots. Those seem to be well-received here on RFF, so what difference does the LOMO name make?
At $349 it's definitely not as good as a CV 35/2.5 or 28/3.5 price to performance wise, but lord it's SMALL. People lined up to pay more for a Miyazaki pancake, so why not this one as well? It's even made from "aluminum and brass", as stated in the product information.
It's quite curious that they advertise "zone focus with a tab" (LC-A style?) on the page while claiming it's rangefinder coupled. I wonder if it means a normal rangefinder lens with click stops during the focus throw.