Many people love the CV 35/1.7, so I wouldn't say anything bad about it. Two things worth noting are that it's a much bigger lens than the 40/1.4 & PopPhoto measured its maximum aperture at f/1.8 while the 40 is a true f/1.4 so the speed difference is significant
It all depends on what you want. If you want a compact high speed lens, then no, the 35/1.7 is not a good substitute. However, some people like the ergonomics of a bigger lens & the 2/3 stop difference may not be all that important to some.
Bottom line is that even though it's not a huge difference, 40 & 35 are different focal lengths & if you like the perspective of one of them, the other is not a substitute.