It's a brilliant little tablet for £35, and I am most pleased with it

but as I am used to the lovely 300ppi of the PW3, I wouldn't want to be doing much reading on it. Someone would need to check but IIRC the ppi of the Fire 7 is about the same as that of the good old Kindle Keyboard (and as much as I loved my K3 at the time I certainly wouldn't be reading on one now unless I had no choice.)
If you intend to gift it to someone who isn't too bothered then it should do the job just fine; if however they're used to better screens then it won't be so great.