this looks cool, but like some other people id want to push this tech to try and fool the viewer into thinking it was bona fide pixel art. As eishiya said the models seem to have too much detail in them, I think its because of the resolution, you cant really solve that by tweaking the model or the lighting. if the image size of a game using this was 320x240 (off the top of my head as a high-for-old-games resolution, maybe higher like 480p could work?) say, and then your boat model had to be rendered at size more suitable to that overall resolution, you'd have to simplify and redesign the boat a ton, but if you got that looking good I think it'd look a lot more like what we think of when we think of pixel art.
With your tech could each object be drawn with its own perspective too? so no matter where they are on the screen, they're always drawn as if they're being viewed from a fixed point somewhere in their centre.
like beast said, id also reduce frames of animation or go actually pose them per frame like pixel art (and reduce the frame count also). If I was making this game for real I wouldn't have the islands rotate, and just kind of bob in place, with that fixed perspective thing applied if its possible.
I realise I'm looking at it from a different angle from you though Howard! It still has its own cool look that I dig.