If this is what Jeff was talking about... Wow.
Hmm. Not seeing why such a big deal was made out of this. I see mediocrity on XBLA all the time. It just looks like a brawler with PS1-era graphics. A small remnant of an archaic genre. Nothing more, nothing less. I was expected something so bad it would make for great comedy. This is not that.
I think I remember Jeff talking about this on an old Bombcast and I confused it with Double Dragon Neon. I was really confused as to why he seemed to think that game looked so bad. Neon came out and was okay, even if Jeff didn't dig it (full disclosure; never played it myself, either.)
Well, uh, now I get it, though.
The marketplace description for this game is amazing:
This is a remake “Double Dragon II” a 80’s game. The story line takes same as original game story. However, the graphic, character, action, system etc. are change. Also we are including new stage and enemy in the game. The player will be addicted to new version of Double Dragon II. Also, characters are undressed from 80’s style, and recreated with modern sexy and beautiful style that amaze you and feel never been experienced world before.
So, apparently this game was finished like 2 years ago, but the company making it went out of business or something? I'm not quite sure. Anyway, looking for it on YouTube reveals that Xbox 360 modders have been able to access and play this for a long time.
The final version up on the marketplace right now looks exactly like the one in the video in the OP.
QUOTED. For posterity. :)