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Because either you go full graphics, or you stay oldschool as fuck. Here they are just delivering shitty graphics, under the standards that the console could do, but still different enough to piss off the nostalgia fag.
Picture more or less related. I'm not saying people would be happy with it, nor it would run on a portable console, but it's an exemple of "Taking risk and going full speed to an amelioration" instead of just half-ass a thing and be bad for the nostalgiafag and bad for the "omgneedcoolgraphics"-fag.