It’s sublimely beautiful, yes, but I’m also very skeptical about gameplay depth and overall interactivity.
It's probably smart to be skeptical of the game until we see a full play session. It's a first-time developer, and we've only seen a few portions of areas (a town, a hillside, a kind of misty wasteland, and a cave) of the game.
But there is also stuff to like about the gameplay in the footage shown, beyond just the artstyle. (And the artstyle is almost undeniable IMO, though there's been some pushback here about that too.) I really like how the Rot characters become part of your combat approach (they form your projectiles, they act to antagonize or incapacitate the enemy, they can replicate attacks so that your bow strikes become multi-projectiles, looks like you can cluster them into a giant attack-pet as a bomb,) and then the way Kena climbs ledges and spin-jumps when platforming makes it look a lot like what I imagine a Jak & Daxter Precursor Legacy sequel could have been this gen if Naughty Dog was still dong those.
Watch the State of Play and Future Games Show videos (there's way more than 10 seconds of footage, BTW, so whoever said that can knock it off,) it's specifically the gameplay that has me seeing promise once I'm done getting eyeful of fuzzy Ghibli creatures...
