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The "late PS2 quality" comment made by the developer is likely in regards to the general look of the games models & textures, but the Ouya has limited shaders like the 3DS, something the PS2 & Wii don't support on the hardware level. The Ouya will also likely have the ability to output in HD perhaps even with anti aliasing.

EDIT: Long story short it will look better then PS2/Wii.  Even the $35 RasbarryPie (sp?) micro computer can run Quake Arena in HD with anti aliasing at a good framerate.  It's getting kind of goofy the amount of performance you can get out of cheep hardware now days.