Right now it's basically no more than Terraria with spaceships, which isn't really a bad thing. It runs fine on my, I guess 2-3 year old iMac? Watch the quick look, maybe look up one of the wikis out there. If I were you I'd wait until the next patch goes live (which should be quite soon, I think), because it's going to wipe characters BUT they've said this is the last time they're going to need to do that.
I think stills would've worked better purely in terms of maintaining a level of quality. Had the animation been given the proper time, yes, it would've been more effective, but as it stands it seems uncomfortably amateurish compared to the rest of the game's animation and polish. Bastion managed some incredible storytelling beats using only illustration and in-engine animation, it's a matter of acknowledging your limits and doing the best you can do, not trying for the best you'd like to do.