To be fair, the quality of that video is pretty good, if you consider it to be a episodic game. Models are fine, as are the textures. Animation looks solid. Presentation looked good: nice cinematography, cuts, lighting, and so on. You could show that vid as a trailer for episode Eternal Darkness 2 and it would pass pretty easily.
Given Eternal Darkness' structure, which is really very small "levels", I wonder how hard it would be to just finish one short episode, release it for free, and use that as a pitch for the rest of the project. Especially something like this, which has a lot of cynicism and worry hanging over it.
Like, I'm fairly certain a team of ~three people could whip up a HD remake of the first stage in Eternal Darkness pretty damn quickly and easily. I guess they're going for bigger things here, maybe more cutscenes and story telling, but when selling the idea to the market, it doesn't hurt to be generous.