This has some vague interest for me--I love the idea of no infinite loops--but I'm not digging the aesthetics either. With this kind of game, how it looks is important. I liked Blazeblue because its look suggested over the top anime fighting antics, and that's exactly what I got. Same for Guilty Gear, same for Marvel Versus . Excluding Necrid and Ivy (and Spawn if you got that version), Soul Calibur 2's look promised a more medieval combat type of game, and again, provided well. So far, this looks closer to Looney Toons, especially with the introduction of Peacock. (Reading the character's bio on the site, I see that was intentional for her.) That holds no appeal to me.
I guess what I'd like to see are some characters that I can take seriously. So far we have girl who's hair has teeth, girl whose hat has arms, and girl who literally throws pies and summons "cartoon cronies." The goal for a fighting game should be epic ridiculousness. So far it's "I can't take this seriously" ridiculousness. At this rate I wouldn't be surprised to see Karapyss the Crabomancer or Professor Necro-Dead [http://www.penny-arcade.com/comic/2011/7/8/], and that leads to exactly the same problems the Penny Arcade guys discuss in Rise of the Immortals.
Another concern of mine. Are there going to be any men among the playable characters? "A bunch of people beating each other up" sounds like your standard video game. "A bunch of hot women beating each other up" sounds outright exploitative and tasteless. I have less of a problem with the standard busty video game babe when it's paired up with the standard impossibly buff video game dude. To people who see Litchi and go, "Big breasted bra-less woman, more proof that gamers are all mentally pubescent boys with impossible expectations of women," I can reply, "Okay, I'll give you that we have utterly unrealistic women, but check out Bang, Hakumen, and freaking IRON TAGER*. We have utterly unrealistic MEN as well, and in that way it kind of balances out." Without that kind of balancing factor, I kind of doubt I'll be able to put the kind of investment a good 2D fighter requires simply because the expoitative side of it is such a turn off.
*As an aside, this isn't hating. I main Tager in Blazeblue. Real SOVIET damage!