I prefer everything off.
so in other words it sucks.
Not necessarily. They use the same filters found in most emulators, and I just don't care for the "smooth" look. I want my 8 and 16-bit sprites chunky! With the enhancements turned off, the system does a really good job upscaling to 1080p and keeping everything nice and sharp.
They posted a video of Donkey Kong Country not long ago and that style of graphics was the only time the smoothing effects seemed to make the game look better. But I've never been a big fan of the pre-rendered stuff on 16-bit consoles (aside from Sapphire).
The sound enhancements, imo, suck. They try to give the game more of a surround sound feeling, but it just sounds like the game is being played in a cave, under a bunch of blankets.
It still looks like a really cool system, though, and I'm glad the user has the ability to turn on and off the enhancements as they please. And I'm really excited about the save state function! I've also read that you'll be able to share your save states with others (there's a slot for a flash card), which could have a lot of promise.