I have to say, it's pretty good. The player interface is nice and simple, and it works well. The player control lacks MX Player's gestures, but that arguably makes things simpler.
That said, I'm still not really seeing a good reason to switch from MX Player, apart from the lack of advertising in the menus. And as far as I can tell, VLC lacks one of MX Player's best features: it doesn't hide the soft buttons and use the entire screen on the Galaxy Nexus. That alone is enough to make me stick with MX Player for now.