Look at the trailer posted there again. You can see updated designs Hanzo, Tam Tam, Ukyo...
I really think the backgrounds look gorgeous. I like the characters, sure, but generally speaking, 3D games don't do a great job at making their backgrounds look like they have a STYLE. They always focus on the style on the characters, and the BGs are just bright textured 3D.
These look like paintings. They have some strong linework, great foilage, "Godrays" of light, etc.
The "Fatal Slashes" so far look rather nice, too. Poor Nakoruru getting blood splashed all over her face is the kind of artsy, character-impacting violence that works well with this kind of artstyle.