I have to disagree this time. That is not fine at all. But I agree with DS, that a clamp on the chainstay would improve it a lot
First, though that is a great torque arm, it was designed as a universal front fork torque arm. So you may need to modify it slightly to get a good install on this particular bike.
Here is what I see as a problem. The way that second piece is attached, and the way the clamp is attached to the seat stay is liable to slip up or down and still allow some movement of the axle.
But happily, I see a fairly easy fix. Rotate the second piece of the arm downward, till it has a good angle to attach to the chainstay, then drill a hole so a second bolt can be attached, making the torque arm longer and then clamp to the chainstay.
If a good angle can't be done, then make a steel piece that can be put on at the right angle, from some flat bar stock.