I wouldn't write it off just yet, it can sound actually quite good on nearby strong AM stations. Most AM radios filter out audio reception above 5KHz, because of excessively narrow IF strips. But this radio has only two tuned circuits, and should allow the reception of the full 10KHz audio AM stations broadcast. Yes, AM radio channel separation is 10KHz, but not in the same market. AM stations use 20KHz of spectrum, for double sideband AM. The station 10KHz away from your local flamethrower will be extremely weak, and in a radio like this, not audible.
The volume control in sets like this are actually a combination of variable antenna loading, and RF stage gain (as a cathode resistor). The wiper is ground, one end goes to the antenna input, the other to the RF tube cathode. Turn the volume down, you are increasing the loading on the antenna, reducing the signal the RF tube is seeing, and also the gain of that tube also drops as the cathode resistance goes up. A lot of creative innovation went into the design of cheap radios!
Where this radio will NOT excel is as a DX machine. It's strictly a local station receiver.