Got it working in Unity, it is possible to look nice... obviously everything is pixelated and will move through those restrictions, but if something looks distorted or blurry, it's because it has some sort of anti aliasing (annoying but removing it fixes blur) or because it doesn't look good pixelated (my game is squares, if something doesn't look recognizable when rotated or scaled, maybe rethink it a bit. Though, I can't tell from your picture if it is already working or not.