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I'd add to that saying it looks a lot better with an rgb connection on an sdtv. That made a real difference for me,It's directly comparing pixels. You don't remember it looking that bad because you either played it in SD on an SD TV or never compared it. When compared pixel for pixel, there is simply not as much information in a 480i screen compared to a 720p image. So when you stretch out the 480i image to match it, it shows how fugly it really is. Aliasing, blurry textures, etc. They also replaced Sora's model with his KH3D model I believe so there's that too. When I go back and play a KH game on my PS2, even on an SD TV, it's impossible not to notice the "staircase edges" (a.k.a. aliasing) and the fact that it's not widescreen, especially after HD gaming for so long. But it does look a lot better on an SD TV.
And even in HD on emulators, where the flaws were more apparent, ignoring the sharper edges, textures and video still didn't look too bad. I say that as textures and other image files are locked in resolution and are often lower res than the game itself.It's also because we all played the game of SDTVs so the display quality looked fantastic as it was because of smaller screens and whatnot.
Just remember these are promo images taken directly from their development kit. It's possible the actual game is not gonna look so great.I put this up on my TV screen / PC monitor which is 1080p cause my iPad didn't do it justice. WOW!! It looks amazing! The shot of Sora on the island filling the screen is just perfect! I also saw the intro on YouTube in 1080p (might be upscaled from 720p, don't know) of the intro. Brand new render, a joy to look at.. O.O I've changed my wallpaper and I'm atop the hype train, listening to KH music!