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It's not true:
http://img155.imageshack.us/img155/9093/dolphin2011072518205428.jpg
http://dkc-atlas.com/media/graphics/snaps/dkcr/dkcr_snap_hd_0009.png
http://dkc-atlas.com/media/graphics/snaps/dkcr/dkcr_snap_hd_0006.png
http://dkc-atlas.com/media/graphics/snaps/dkcr/dkcr_snap_hd_0010.png
http://www.wiinintendo.net/wp-content/uploads/2010/11/sf8e015.jpg

Lower quality emulator:
http://www.topofarmer.com/wp-content/uploads/2010/11/dkcr3.jpg
http://www.topofarmer.com/wp-content/uploads/2010/11/dkcr4.jpg

 

Look at the blurry textures VS the clear polygonal models. The screens in the OP probably use an older emulator, I think it was a bug/issue that was fixed later on.