TPR/TPE is in general a good step up from jelly and other materials that are strongly suspected of not being too healthy. It's cheaper than silicone (substantially), and therefore probably does have a place. It would be better if companies were more forthright about what their particular TPR/TPE contained so people could avoid chemicals that they react to, but for now I don't know of anyone who does that.
On the minus side it's not silicone, glass or another absolutely safe material. It reacts with certain lubes and some other toys, it's hard to keep clean and sanitized (because it's porous), and something might be hiding in the proprietary formulas that will eventually bite in the way that phthalates did. Again on the plus side I think that manufacturers are starting to give more thought to safety, so they're probably more careful in what they put in the mix.
While I wish that silicones and other bodysafe materials were cheap enough to dominate the market, I realize that they aren't (especially for the large toys, where silicone can be 3-4 times as expensive), and TPR/TPE is better than jelly.