The S754 3200+ is not bad at all and not very different from the S939 3400+; They're both of the same core, same clock and I don't think the dual channel controller on the latter makes a "200+" difference. If I was to build a dirt cheap, browsing, typing, even light working and gaming machine, I'd go with the S754 because at the end, even S939 is no longer the choice for an upgradeable PC.
Don't be silly. Someone on such an extreme budget is not buying newer software that would have any significant benefit from dual core, and if performance really matters insted of lowest cost they'd just get a low-end Core2Duo and O'c the hell out of it.
This is a great price for this CPU. We enthusiasts might turn up our noses at it, but the average joe doesn't have a CPU this fast yet and for $32 it's a steal. It's all a matter of what the total budget is. Even on a tight gaming PC budget this could make sense.