It is a good demo to show that (relatively) smooth scrolling can be achieved on such a low-end machine not designed for gaming, but as far as gameplay goes the resemblance to the Mario series stops below the surface. The physics that make the Super Mario Brothers games simultaneously unique, fun and challenging are more specifically defined than "2D Newtonian jump physics and you can jump on guys".
In addition, some of the background graphics are very well done conversions (clearly done by just looking at the original without actual access to the data) while the character sprites are surprisingly messy. What's going on with Mario's face? You'd think the Mario sprites would be the most important aspect of the presentation!
I don't want to be overly critical of something like this and it's really great to finally get a look at it, but it clearly took a lot of time so it's just odd to see certain details overlooked in what was to be a proposal demo to a big company like Nintendo.