I have one of those too. You described it perfectly. Mine has started getting torn up at the cuffs, they're not durable against tearing. But for what I paid, it's far better than what it replaced (a clear plastic racer-style jacket). Unlike fabric coated with a water-repellent coating, it's remained waterproof, too.

The ability to pack the O2 jacket down small enough to stuff in a jersey pocket is nice when the weather's looking iffy but I want to go on a group ride or something.