It pretty well is a disguise, there's no arguing that. But for people that wants a new LoK game they have not played, this gives them hope. I do recall some LoK games in the past that let you change how your character looked. There was a zorra, peach I think, a few others. In my opinion what made them LoK games were the ease of access of building the sex scenes; The bodies, arms, legs, and other details of the like were originally made for easy configurations, the old 0.8 version that Abelius helped to create was in essence, a LoK game in this aspect. I don't think Krystal makes it a "Legend of Krystal" per say.
That said, Pizza Hot (by looks, have not played it, do correct me,) could be considered a LoK game by essence, since it (probably?) uses existing parts to create the illusion of porn. LoK is more than just a character, It's a genre. One that is very specific to it's plot atmosphere and environments.
I want to make a hypothetical real quick. The old LoK games, if replaced with Princess Daisy, would it still be a Legend of Krystal? What makes it a LoK game? is it the character herself? The ambience?
I think it's a little of everything. One of the important aspects is that the character is stuck on a jungle planet getting screwed. That seems to be the basis of the plot over the spectrum of all LoK games. Yet it is more than that. It's also using existing parts to create scenes from a certain viewpoint.
In that respect, this game falls a bit short on that. Instead of easy to configure parts to create porn, there seems to be some reliance of CG artwork - something that in my opinion, doesn't match the LoK standards. So this is more of a pseudo LoK, if you will.
Until they start doing more scenes with the in game sprites, I can't say for certain it's a true LoK.
Edit: I just wanted to add the Peach game, Bowser's Castle, was built using the same idea and and complexities as the original LoK made by Playshapes, that I would consider it a Legend of Krystal with a heavily modified skin. It may sound silly, but it sits right with me.