yep, you're correct (though this isn't a bad thing - Donkey Kong did the very same thing for its sprites and it's often considered to be one of Nintendo's best)
I'd say that this Toy Story game is indeed a "good for its time" game if we compare it with other portable racing games in the market.
About portable racers of the time, I think I'd put F1-RACE a little higher than Toy Story Racer though. Despite the latter's graphical tricks, F1-RACE seems better designed (with slipstreaming, booster and 4P multiplayer) - I'm not even considering which one came first, too.
I'd say that this Toy Story game is indeed a "good for its time" game if we compare it with other portable racing games in the market.
About portable racers of the time, I think I'd put F1-RACE a little higher than Toy Story Racer though. Despite the latter's graphical tricks, F1-RACE seems better designed (with slipstreaming, booster and 4P multiplayer) - I'm not even considering which one came first, too.