It looks good. But you want to be careful picking D1. Schottky diodes are great for low Vf, but when reverse biased they can leak a good bit. And the leakage current rises exponentially as they get hotter. When USB is connected, D1 will be carrying the entire load current. If it gets hot doing that, then when USB is disconnected the diode may leak a good bit of battery current back through to the gate, raising gate voltage, and not allowing the mosfet to turn on fully. The fix would be to lower the value of R2 to sink the leakage current until the diode cools down.
In picking the diode, you want a low Vf to reduce the heating, and low leakage specs. But those two are usually mutually exclusive, so you have to compromise a bit. A high current rating will help because the diode will be bigger and dissipate heat better, and not get as hot. In the last of these circuits I built, I used an SB220, which has a 2 amp rating, but I never go above 1 amp of actual current. And my R2 was 10K, with no R1.
So in testing your circuit, the critical point is the transition from USB power to battery power when the diode is hot - there should be no sag or dropout.