Nice post, Blaine. Yes, the character art style is (and will probably stay) cartoony - That's what Lori requested as the most likely to look good in the tiled interface. We've actually only seen a little more of the art than anyone else - There are some great B&W monster sketches, but if we posted them people would undoubtedly say, "What? A Black & White game?"
Several people on the art team worked on the QfG2 VGA remake, and we have a lot of respect for them. They are all currently making stuff for us for no money in their spare time, so we are not going to tell them to drop their day jobs to give us art before the Kickstarter funds.
There will be a major art update within a week including a video by art director Eriq Chang, more polished scenes than any of us have seen yet, and a mockup of the game with real art. I'm looking forward to it. We actually think the game is going to be beautiful, but we have to trust our artists on that because we haven't been able to pay anyone to work full time on art yet (or pay them or ourselves anything at all, for that matter).
More historical notes:
I equated QfG2 and SQ4 because they started at the same time under the same initial conditions. Two months into both projects, Sierra management decided to rush QfG2 out in time for Christmas 1990 by using the old EGA+parser system, and postponed SQ4 until 1991 to let it use the new parserless VGA system.
Space Quest 3 was developed at the same time as Hero's Quest, so there's an apples-to-apples comparison. SQ3 is credited with 5 programmers, Hero's Quest with 4. Mark Crowe apparently did do all the art for SQ3, which was very unusual at Sierra. Roberta Williams and Jim Walls were both game designers who did neither art nor programming. Lori and I designed - with her as lead, full-time designer - and I programmed our early games until Sierra assigned me to a systems programming project during QfG3. Lori could have done our art, but Sierra put her in the Roberta Williams category and let her focus on game design, writing, and directing the project.
Teams at Sierra had 6-10 people in the EGA era, 20-50 for the VGA games, and 50-100 for the 3D adventures. By that time, the budgets crept up into the millions, and sales still topped out at a few hundred thousand sales, so they stopped being profitable (Sierra made about $10 per unit sold).