its not so bad, i've seen worse. at our school, essay time is a mad dash for the pages. often 1200 words in 35-40min. however in statewide exams (ie. school cert, and soon to be hsc) you would have to be more careful coz while at your school your teachers might give their best shot to work out the writing, there is no guarantee that a hsc marker will do the same. they might (might, being the operative word here) not bother to read and even with the 3 marker system, one mark is enough to drag you down, so best not to risk it. take handwriting lessons if u must, im in a similar predicament myself.
i see some prelim modern work there, i wrote a similar response for "state the role of the arms race in the outbreak of war in 1914" myself, albeit slightly more legible