I bet you can make it work for you, but just as a heads up, I've stumbled upon some unfavorable reviews
of Danby's built kegerators.
for one possible solution.
Sounds like the digital thermostat is not to be trusted, but relocating the control sensor (I recommend taping it to the side of the keg or placing it in a container of mineral oil) will improve things quite a bit.
Then again, I bet most of the complaints are coming from dudes trying to ice down their kegs of BudMillerCoors and pissed they can still detect flavor.