Some have reported good results shooting .32S&W Longs and .32H&RMag out of the little pistols. Cases bulge and may split due to the chamber/cartridge mismatch, but I have not heard of functioning problems, and no one seems to feel that this is a dangerous gun/ammo combination.Not the Nagant that requires the $$ Fiocci ammunition that only puts out a wimpy 137ft/lbs, I hope.
You can also find Russian commercial Nagant ammunition for around $15 a box of 40. http://www.southernohiogun.com/ammo.html
It's worth noting that most people don't shoot their self defense guns much, and to a person like that, a sturdy, reliable, $60 revolver is a pretty good deal, even if you have to pay extra for the ammunition.
You're right though, it's certainly no powerhouse.