Hmmn. Sora's face still looks kinda weird in this style, but it's not as jarring as it was in the scene at the end of III. The other faces that I saw didn't look like they were trying to shoot for a completely realistic style, so maybe the art style won't be so ...off... after exposure to the full game. Or they'll nudge his design some more.
Really, though, if they're going to use a realistic art style with that level of detail, they need to give him a proper face. Human skin texture and cartoon facial features do not work well together. You need to head for one side of the Uncanny Valley or the other.
The gameplay shown looks like an evolution of III's gameplay, and I rather liked that, so... Good? The keyblade turning into a hookshot was an interesting twist on the airstep thing from III. Wonder whether that's just a cosmetic difference, or if it's actually going to have some gameplay involved.