Just got one and have a similar reaction to it on my 3" camcorder LCD. Besides the awkward wraparound, it *just* clears the viewable portion of the LCD screen. That means you have to place it very precisely to avoid having it obstruct the sides of the image. Haven't done a "real" shoot with it yet, but it appears that in practice the lack of space around the LCD means it'll be a bit more difficult to position my head to make sure the sides of the hood aren't blocking part of the image. For people shooting family videos and the like, what's at the very edges of the image may not be a big deal. But if e.g. you're using it professionally or to shoot events, you will want to be sure you're seeing the entire frame.
Unfortunately there seem to be a dearth of options in 3" LCD hoods, so I'll probably keep this one and just try to place it carefully. But would be nice if Cowboystudio et al would make some hoods specifically for 3" screens.