Totally useless. The '5V' setting will output around 3.5V and the '3.3V' setting will output around 2.5V, sagging approximately 1V for every 3mA of load current!
If you are starting from a 5V USB charger, then all you need for the 5V setting is a 200mA polyfuse to provide over-current protection. The 3.3V output needs a LDO regulator with decoupling caps as specified in its data sheet. Use a SPDT center off switch at the OUTPUT to select the voltage 5V from before or 3.3V after the LDO regulator.
Also indicator LEDs go across the supply, with a current limiting resistor in series with the LED, *NOT* in series with the output!