Hell yes it can be taken seriously. I really can't say I've been as thoroughly entertained by any DOA matches the way I was when I was watching that Summer Jam stream and that's because Rikuto's matches had me sold that you could play the game in a serious, competitive way with your character and be rewarded for doing so. Just having that in the game makes it something that can succeed and become popular in my opinion. I just want the game to release so we can see some real competition going down.
And no, no amount of DOA-style TnA is going to turn away players. If the game's solid when they play it, it won't make a difference. If the visual style is that much more important than the way the game plays and how much fun it is and you don't like it, you should be playing another game to begin with. I personally think the style's evolved in a more mature way. I like how the ladies look like more realistic women (*opinion*) and every character seems to have plenty of attention being given to each individual personality.
Honestly, looking at what's actually in this game, it doesn't seem that any part of it was less important to the dev team than any other. From the story, modes available, costumes, stages, and character renovation, to lobbies, training mode, mechanics, and overall feel, this game feels like an extremely solid effort from every angle.