Capcom has revealed some more tidbits about Mega Man Universe that might make up for the bizarre character sprites. For the first time, you can fully customize a character by mixing and matching different character parts, each with their own set of abilities. You can then take your custom Mega Man and play through the entire game.
In another first for the series, players also have access to a full level editor. You can create your own levels and then share them online with others. While all the revealed editor parts at the moment are Mega Man themed, Capcom said that "a variety of custom stage parts will be revealed soon." My money on the first set of custom parts? Ghosts'n'Goblins.
Finally, here's some screenshots of the customization, the return of a Mega Man 2 weapon and the level editor in action: