to be totally honest I think beat em ups are one classic gaming genre that actually are improved in 3d, I mean it hasn't been done well very much in a traditional streets of rage style, but generally beat em ups are 2d games that attempt emulate 3d gameplay anyway.
That being said, this game doesn't look like it's being made by the right group of people.... but something like spikeout and godhand or even ninja gaiden or devil may cry would do the streets of rage name justice just fine IMO. Yeah this game looks kinda wack, but more because it looks like a generic western game developed by people who don't understand the finer points of a combat system, than just not being sprite based.