We just bought a grey sectional and saw this a couple of weeks later. It looked great in person. For the price you can't beat it. My only concern with it was I think it was a very directional piece. I was worried about moving and it not fitting in a room.
We bought our last couch at Costco. It looked identical to one at Pottery Barn and I think be payed a whopping $400 for it. It went through two kids and three moves and held up great. I had it professionally cleaned and you would never know it had such a rough former life.
If it works in your room I would go for it! For that price when the kids are a little older it can be replaced.