On the Amazon page for Deadly Premonition you can see two separate character designs for both the main character as well as the sheriff. 
 

Is it just me, or is it weird how this game actually looks pretty good IN STILL SHOTS?

Just an earlier design.  They took heat because of similarity to Twin Peaks so they changed up some characters.  This version of York is way too boyish anyway, the York final product is a better design.  The Sheriff you picture above is almost a carbon copy of the sheriff in Twin Peaks so go figure he got changed.

" Is it just me, or is it weird how this game actually looks pretty good IN STILL SHOTS? "

Deadly  Peaks~

This was back when it was known as "Rainy Woods" in 2007. Here's the original TGS trailer from way back when:  
  

" Just an earlier design.  They took heat because of similarity to Twin Peaks so they changed up some characters.  This version of York is way too boyish anyway, the York final product is a better design.  The Sheriff you picture above is almost a carbon copy of the sheriff in Twin Peaks so go figure he got changed. "

David Young Henning ain't got shit on Francis York Morgan. Just sayin'.

I like current York and Sheriff better.

" This was back when it was known as "Rainy Woods" in 2007. Here's the original TGS trailer from way back when:  
 

holy shit that trailer blew my mind.
 

" Is it just me, or is it weird how this game actually looks pretty good IN STILL SHOTS? "

Francis York Morgan is a better name too.  It is an interesting trailer there from 2007.  Other than some character designs and names it is mostly the same.  Actually the graphics (hilarious as this is to say) look a little more polished in the final version than that trailer as well.

" Is it just me, or is it weird how this game actually looks pretty good IN STILL SHOTS? "

" @Mysterysheep: Holy evangelical, that's a really strange thing. Damn Japan. Also, this game took 3 years to make? Crysis probably didn't take three years. Just sayin'. "

Woah, the original model for York looks a lot less charming and more generic.
 
I like the new design way better.

I agree with you guys, new York looks way better than old York...err David.
 
Maybe it's because I've watched/played so much of the game, but York's voice seems to fit the new model model much better than that blond teenager looking guy.
 
I wonder... how much of the voice acting had to be changed? Based on the trailers the voice actors seem to be the same, but they must have had to come back into the studio like a year later and re-record a bunch of stuff. That might explain some of the level fluctuation in the dialog.

I like the current models also, And definitely from seeing that early trailer a lot was taken from Twin peaks at that point in the production.

Woah thanks. I saw some pictures of Agent David Young Hennig and didn't know what I was lookin at. I was like does a second agent come to town? is he good or evil? is this a spoiler? is that Zach?
Now I'm kind of dissapointed that it's not some awesome twist :/
I think he looks allright though. Definately better lookin that York, but it suits the game more to have York.
And I like George better in the real version, he's such a charicature.