Yeah, the Kotaku article does prove there have been at least some noticeable downgrades.
However, it doesn't put me off buying the game at all. I expected we'd get a game that would have similar technical shortcomings to the original Xenoblade: low quality textures, slightly ugly faces and some animation issues.
Despite those issues, and despite noticeable jagged edges, I played and loved Xenoblade for over 120 hours and will be playing it again once I'm done with Mother 3 (I'm having a JRPG on the go alongside whatever else I play this year). The technical issues won't, for me, compromise the immersion in the game world that I'm anticipating most. I can't wait to explore Mira, and while graphical downgrades are disappointing, it's not something that would ever make me avoid buying this game.