Nope, the NEX's high res LCD actually looks pretty good like this, and the view is very similar to using a waistlevel finder on a Hasselblad with the magnifier popped up.
Although I haven't compared them directly myself, this contraption should actually have better image quality than a real EVF, outside of the barrel distortion, because of the different ways the two are built. To quote sybersitizen on another forum:
"You might not realize that the EVF uses a different technology than the LCD. [The A55 EVF] is a sequential field display with only 480,000 discrete pixels in it compared to 921,000 in the LCD. And each pixel in the EVF has to cycle through the three primary colors in continuous sequence, leading to color artifacts when there's movement. That's why Sony can claim the EVF has '1,440,000 dots conversion' in their literature (480,000 x 3 = 1,440,000). The EVF technology cannot actually match the LCD technology in practice."