That game looks retardedly fun.
It is! My friend has it for PS2, it's freaking sweet! You can draw anything you want, although it's kinda hard to draw REALLY good looking things, so that makes the Gradius thing all the sweeter. I almost bought my friends PS2 for that game, but his is really dirty (peanut butter all over the front) so I assumed the internals were going to crap out as soon as I bought it, so I said no way Jose.
The game is really fun though, and f*cking hard to find. I reccomend it to anybody.
EDIT: I'm looking at the other videos of Grafiti Kingdom, and I guess it isn't the same. The one my friend has is more of a turn-based game, not a platformer. Why would they change an entire battle system for localization? Oh well though,the game I played is still fun. 8/10.