It's not the softest, but I've seen worst. I find it's a nice "basic" wool, it's not expensive and it knits well. I made a scarf with it (solid color) and the person I gave it too still wears it without any complaints. I also made wristwarmers for myself and have no problem wearing them.
However, I think "not-so-soft" wool doesn't bother me, so it's hard for me to judge if people will find it too scratchy or not.
It depends what you want to do with it and how sensitive your skin is!
I almost bought a skein of the "paint" shades, and ended up changing my mind. For some reason I didn't really like the look of it, but I can't put my finger on why.
I might be too spoiled with the gorgeous hand-dyed multi-color yarn you can buy.
It's definitely not in the same category.