Since Homer Simpson's been referenced a ton, I'll be contrarian and say that the characters remind me more of
Rob from Don't Hug Me I'm Scared. Has the same creepy/weird factor to it.
After watching the trailer a few times, I think I'm coming around to it, or at least getting what it's trying to accomplish. The overall art style is great, but the character designs themselves take some getting used to. The minimalist design of the original lent itself to people's imagination much more easily, and I don't think people imagined the stickfigures to really be slightly pot-bellied, stout, big nosed weirdos.
At the same time, though, it does feel like a logical extension. Nidhogg, at least to me, always felt a bit grotesque, hiding a pretty dark, twisted world behind its minimalism. Everything is dark, grimy, blood and bodies dissipate after a while to the ether, and you're fighting to be sacrificed to a giant worm. Hell yeah a more detailed art style would have creepy, weird shit going on. It might just be that it veers a bit too much into cartoony or farcical rather than grotesque and creepy.
Seeing some more continuous gameplay might help. I'm interested in seeing if the overall gameflow/game speed is kept, the character animations currently feel a bit stiff/sluggish to me compared to the original but that's just from a snapshot. More detail tends to make animations a bit more difficult to keep fast and fluid.