What, butchered? I consider it to be a compromise really. Ed kind of looks like either Bert or Ernie, but really, if all characters looked like they came out of the Ed, Edd, and Eddy universe, that'd be odd. As for the Mandark cape, I think he may have worn that in some episodes (the ones where it shows his lab) or in that one movie (Ego-Trip?). But yeah, some look silly - without modification, Dexter would have been a midget and the Powerpuff girls would have been handless midgets.
I wonder though if Tom, the Toonami host is in the game at all.