I use, it. I am well aware that others have their worries about it. Normally I would err on the side of caution and if in doubt use something else, but in this instance i really think something may have got blown out of proportion where the stories started on this no longer being suitable or someone did not understand what it was made from. Serendipity wrote a good thread which I will link here.
Tiny Friends bathing sand
I have used to for 1.5 years with no sign of my hamster having an issue with it.