Yeah, the graphics are pretty incredible. Have you guys seen Simon Andersen's "Colossal Katamari" pixel art? I think it's been the top-rated piece at PixelJoint for years:
The graphics are absolutely fantastic. The flying ship area looks like a fun part. Looks very promising; hopefully the story matches up with the graphics.
Some of the graphics looks so good, that i will feel really bad on behalf of the graphic artists if the game never gets completed, or turns out to be a drag gameplay wize.