There's no question that this is a well done picture, it just doesn't sit well with me. Ponyo is an incredibly cute and innocent movie and this re-imagining is just...odd. It feels different from the Pokemon re-imaginings, I'm not sure how to describe it.
Here's a comparison: My Neighbour Totoro is another incredibly cute and incredibly innocent Miyazaki movie. Here were two drawings ([link] and [link]) that made disturbing images yet somehow managed to retain the original feel of the characters.
It's hard to explain. I guess that both the Totoros I linked retain SOME of the original Miyazaki style (albeit bastardised) while this composition is more of a SoupAndButter creation with a Miyazaki influence.
At least that's how it feels to me. I don't see the Miyazaki spirit in it.
Feel free to disagree, though, it's just my opinion.