No, that 3-in-1 adapter will not drive multiple monitors.
What you need is either a system that combines 2 monitors, or a system that chains them. While DisplayPort allows for daisy-chaining displays, this only works on supported hardware. This means your monitors need to both have two DisplayPort connectors and official support from the vendor and inside in the chipset to make this work.
I believe that you aren't going to buy two expensive chain-able monitors since, well, you don't want to buy an expensive adapter ;-) The next stop would be stuff like Matrox's DualHead2Go. That is a device that allows 2 displays to be connected to a computer as one big display. http://www.matrox.com/graphics/en/products/gxm/dh2go/digital_se/
It does cost quite some money, so it might be in your category of 'expensive adapters'...
The problem with your question is that it is rather specific. It's a niche that most people don't even know about, and not a lot of sales or development is happening there. While it could probably be done cheaper, there simply aren't a lot of options here.
Just remember: one video port can only ever drive 1 display, unless it's a daisy chained display port system or a device that turns 2 screens into 1 big virtual screen for the video port. There is no cheap 2-in-1 adapter to make this happen.
Small addition: you might be able to solve your problem with a USB DisplayLink adapter if you do not need 3D video or accelerated 2D video. It's a video card with a USB connector on one end and a video port on the other. It won't be fast or high-performance, but if you simply want more desktop space, it might work for you. You would end up with one of these: http://www.displaylink.com/shop/adapters
The product page indicates that you CAN use the adapter for the display.
In addition, it can be used to connect Thunderbolt-enabled displays — such as the Apple Thunderbolt Display and LG Thunderbolt 2 displays — to any of the Thunderbolt 3 (USB-C) ports on your MacBook Pro.
Please note the distinction between Thunderbolt and mini-DisplayPort. The Apple 27" Thunderbolt Display ISN'T primarily a display. It's actually a Thunderbolt-connected hub with a built-in display. Why is this distinction important? Because it means that the data traveling from the computer is being transmitted via Thunderbolt, not DisplayPort protocols. While it is true that you wouldn't be able to use the Thunderbolt 2/3 adapter for a mini-DisplayPort monitor, using it to connect your Thunderbolt monitors WILL work. According to the products webpage:
This adapter does not support DisplayPort displays like the Apple LED Cinema Display or third-party DisplayPort and Mini DisplayPort displays
Source: Apple Product page
Edit: I assume you mean the 2016 MBP, as no 2017 model has been released as of this question.
Best Answer
What is "normal" is very subjective. What you actually intend to do with your Mac is what determines if it's capable of handling the processing load.
This model is capable of handling two external displays up to 4K each but that doesn't mean you're going to be driving high intensity graphics apps like gaming or video production with this configuration.
Also, just because a computer can do something (it has the capability) doesn't mean it's sized appropriately for doing that thing long term. Example: just because you have the ability to plug in two display's to your MacBook Pro without a discrete GPU doesn't mean you that you've sized it right - you probably should have purchased the 15" with 4 Thunderbolt port model with Radeon GPU. It's even possible you should have gone with a desktop.
Yes! That device you linked to is a USB Hub. Meaning, all the benefits of Thunderbolt will go unused. If you want to get the best possible performance out of your machine, you need to use the components that will make the best possible use out of the resources you have. Get a proper Thunderbolt Dock instead.
The Henge dock, does nothing more than take your TB ports and move them so you can have the Mac "in an upright and closed position." Other than being slick, it gives you no audio, video, Ethernet, USB...nothing. IMO, it's a waste of money.