I think the games would've looked fine for the most part. That TYM with Kano pic is campy-looking, but the full character sprites wouldn't have been so bad since the level of detail would've been different.
I really wish they would release whatever they have finished on it for us to see. I find it hard to believe that the stuff this guy has up is all there is since they'd have had to get a little further in development to determine that they couldn't get it to work.