I had actually seen this and bought a pack about a week before you posted this. I was looking for something to get me past the "Free Shipping" barrier, and $1.72 was just about perfect. Besides, 500 pellets for under $2, what is there to lose?
I finally got around to shooting some. Honestly, I wasn't expecting them to do all that well, but they did better than I would have guessed. This is at 10 yrds, using my CMP Daisy M853. The target is a 10m air rifle target (forgot to add a coin for scale). I think the cheap Daisy pellets might have slightly larger groups, but not by much. The only comparison I have to it are basic Crossman Hunting (Pointed) pellets. The bottom row is the Crossman, and the row above it are the Daisy pellets. Three shot groups per target. I was hoping that the flat nose would cut nice little holes, but it seems to rip the paper more instead.
For $1.72 per 500, I'll get some more next time I need to add a couple bucks to a Amazon order.