You can get it looking a little closer to pre-2.x by going into Options > Graphics, and turning OFF Sprite Outlines and Highlight Selected Sprite, while turning ON Nearest Neighbor Scaling and Alternate Renderer. You'll need to re-start the game for Alternate Renderer to take effect.
Still not perfect, but at least the characters don't look like cutouts pasted onto to background.
I have done that. The sprites look blurry or extremely pixely if I turn of the new sprites. Before the 2.0 patch they looked pretty great. Shame Beamdog decided to royally screw things up.