I am appreciative of the video poster's efforts of comparing between the PS2 and 1.5 versions. It sure as heck took a whole chunk of his / her time, what with that redubbing of the cutscenes (unnecessary, but it was a nice touch).
Ultimately though, it all boils down to personal preference. There might have been people whose flame had been snuffed out after seeing that the end product isn't really as great as the hype-loaded advertisement, but there are those who don't really care about it and play the game as their entry point to the KHverse or a trip down Memory Drive. And it's not like there's absolutely no change in graphics at all... at least there's this: the aspect ratio has been resized (to, I believe, 16:9), allowing you to see more of your surroundings on the screen.
And I agree with Rydgea in that it's something that I had to see with my own eyes. While I was slightly disappointed that there still indeed are blurry and not-as-crisp scenes, I was thankful that we all have been given to legitimately experience KHFM in English, and our European friends, KHFM and Re:CoM.
I personally believe that for what we've get in the game, it's more than just good enough. For me, the value of this game and degree of enjoyment that I got out of it are definitely high. What about you?