I agree: I rather nice veiled Vikkie
! 
Sometimes, I am at odds with slab grades
But I do not think that PCGS is far off the mark with this one.
I do not see any wear on the high points with this coin.
For my eyes, this coin looks far better out of it's 'prison'. Nevertheless, it still needs a higher grade of protection than that provided by a 2x2.
Before slabs made their presence felt, old time collectors stored / displayed their coins in cabinets and 'cabinet friction' was a risk.
In most cases 2x2's are good enough, but slabs and capsules offer much better protection.
None of my 2000 or so coins are slabbed, but I prefer to grade my own coins anyway, and thus for the more valuable coins, a more secure approach to protection is required. For the protection of high grade coins, I use thin clear acrylic sheet inserts inside the 2x2's.
The answer to display / protection lies with the preferences of the owner.