Actually it's not cell-shaded at all, not even in the video, look at Zelda Wind Waker for Cell shaded.
All this game is doing is put a outline around your characters to make them pop out like a cartoon. Although this is not implemented in CB yet. I assume it will be there in OB.
Only a few things like the wooden horse etc have the outline at the moment.
Personally I don't like the effect and I hope you can turn it off. If you look in the options it's a button saying "Character Outline", but it's not doing anything at the moment, so I guess you will be able to turn it on and off.
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Hybrid Mode
