I would say no, the sideplate on S&W revolvers are normally "fitted" much better than this. However there is no actual hazard in a poorly fitted sideplate, it's just visually disturbing. Personally if I saw this in a revolver that I was considering purchasing I would decline the purchase.
If you've already purchased this revolver you should have looked closer before putting your money on the counter. Some good news is that if you call S&W they may fix this as a warranty repair.