Space dyed wool rarely looks good to me. It always makes me think of tie dyed t-shirts which were popular a few decades ago and which always seemed a bit too much. Almost tacky, with too many colors forced into one space.
Of course, this technique can be used with just two colors and that's not really bad, but often you get that wool which has about eight colors on it and when you knit them into something it doesn't have a pattern so much as it has a chaos of colors.
I'd much rather have a couple of solid colors that were used in a purposeful way and you could probably do that if you were using space dyeing techniques sparingly on a fabric but not so much if you use them haphazardly on a fiber.