I like the colors in the trailer. I think what has turned away a lot of people is the textures, which are a bit lower resolution, but I feel like most, if not all of the colors make up for it. In the trailer, if I'm remembering high school French class correctly, says "Once upon a time.' Not exactly much there, just reinforcing the fairy-tale-ness of the game.
I think it's got great concept, and for me, since this is a small, new developer, I think the graphics fit the game well, and would rather the devs spend more time expanding on a working with concept and expanding gameplay than making sure there's enough polygons on the lily pads and trees. Beyond that, I already thought that the colors were beautiful enough to make up for the lack of textures.