I would say they're declaring it's innovative because it looks like it's supposed to be innovative. Looks to me like they got lazy and forgot textures.
Honestly, the graphics aren't bad. Kind of interesting, really, but you can't call it an innovative game just because of that. Innovative graphics, sure, but not the game as a whole. Wind Waker had innovative, beautiful graphics, as well as a few other touches (ocean), but for the most part it was a classic Zelda game.
Okay, now I've played it. I won't deny that it's interesting, but I lost interest pretty quickly. It doesn't offer much that's new, from what I played. It just gives the illusion of being new, really it's just another strategy game. One that's too slow and boring to be particularly fun.