> One underappreciated aspect of low definition graphics is that your mind can interpolate the visuals
Yes, what Scott McCloud calls "closure" in Understanding Comics.
That said, my mind also interpolates the newer version of Melee Island, because it's cartoony and "abstract" enough, and so I also like it.
One underappreciated aspect of low definition graphics is that your mind can interpolate the visuals, and you feel more immersed. (suspension is disbelief has a positive effect here)
When graphics become HD or closer to photorealistic they are starting to trigger an uncanny valley effect.