I think if you put a red dot filter on it, it would look good. Seeing it in full HD reveals its flaws as animation. The art style is fine and cohesive with the package, but just judging the animation as animation - it looks like bad Flash from the 90's. Floaty puppets with no sense of timing. When elements pan, they're choppy. DMD animation, despite its limitations, usually had good animation principals and timing. Watch the snake match seq on Met or any of the TWD stuff. Lots of great timing, overlapping action...good animators using true animation skills despite the resolution and lack of color. That's also the key to good TV animation - good timing makes limited animation really appealing. There's no timing or real animation principle in the shot of the band playing - it's just random limb movements.
Now, despite my critique - I don't think the animation flaws are a detriment to the game. The style matches the rest of the art package well enough. Would I like them to do better? Yes. Is it a deal breaker for this title? No.