IZAZIE'S PROFILE

As long as so many people enjoy (and skilfully use) that style, it can't be outdated. It's just one among others, that's all.
Nintendo perfectly understood that when they adapted some of the SNES greatest hits for the GBA, or when Square Enix merely copied and pasted FF VI (or FFIII in the US) for the Playstation.
Even the latest Mario game for Wii looks and works like a side scroller made for the SNES, except that the sprite are 3D.
(By the way, EnderX, FFVIII was awful. Better play FFVI or FFIX instead).

But whatever the style, there is one thing that must not be forgotten: talent. Kentona's , in the present case.
He is one of the most talented game makers here (where there are so many awesome game makers.)
Nostalgia alone can't give the reason why "Hero's Realm" is such an incredible game.