It's probably bearable for the passengers to be stuck in their seats for the 72 hours or less needed to rendevous with an orbital station or other larger craft--Gemini 7 had even less space per person than this capsule, and the crew endured sixteen days in it. It would be sucky to spend a week or two with more than three people in it, though.
However, it does appear that Boeing has learned the lesson of Soyuz--namely, minimalism. Instead of using a 25-ton monster like Orion as a one-size-fits-all (or even worse using the 120 ton Space Shuttle used for crew transport only without carrying much supplies in its payload bay), we have a capsule meant to be as light (and hopefully, cheap) as possible while carrying out its LEO ferry function. Hopefully it can be launched on the Atlas V-552 (20 tons capacity to LEO).
I, for one, feel encouraged by this development, as it means that we are starting to see the beginning of real produced-for-commerce manned spacecraft as opposed to the made-to-government-order stuff of the past. If this goes well, then perhaps 20 years from now we will see any organization with $100 million a pop to spare buying one of these to run their own spaceflights (e.g. universities).