Yeah, saw the link earlier today. Man, looks like kof finally hit their animation mark, and may have the juice to compete with SF3. But I remember them initially parting for mix of 2d AND 3d when news of development first came forward. I was expecting celshaded stuff, but I guess they went the long route, and opted for some good ole fashioned pixel art. Then again, the quality of the vid might not be all too clear...
Either way, yes, SF 4 should have followed suit, but instead are trying to grab younger audiences, who will most likely not go for the supposed revamped graphics.