Grinders like that use very cheap pot metal burrs that really have no cutting edge, but rather nubs that pulverize the beans into smaller pieces. They spin at high speed and beat the coffee to death. Of course most of us have had that type of grinder at one time or another. Guess it's better than a hammer, but not by much. The high speed/design will give you alot of fines as well as static.
At this point I'd highly suggest anybody wanting a decent electric grinder budget a bit more and get a Capresso Infinity, Baratza Maestro Plus (if still around) or Encore, etc. They have conical burrs and plenty of adjustment range for most users. If you want cheap and good grind quality a hand mill is the only way to go IMHO. Even though a higher end/more precise grinder is pretty much necessary for espresso, a decent grinder will make alot of difference with other brew methods as well.