Screenshots don't do the game full justice. There are areas that need work but consider this, what other 3D fighting game does all that D-Xhird does graphically? It deserves props for that.
You can tell they had to cut corners to achieve it. Characters are very low poly, basically blocks with good texturing, up to a point. From a distance the texturing does its job but get to close or view them at some angle other than the standard sideview and texturing won't hide that they're nothing but thin blocks. But the same flaw could be said of VF 2, except it was much bigger blocks. The character texturing is very pixelly when viewed up close. I'm no expert but it might be low-res and I think someone once said the game is only runs at 30 fps.
A big downside is the pixelly or solid weapon projectile effects. They weren't designed well, such as Lucifer's wall of fire or Venus' trident ground blasts. Some look alright, like Sabrina's or Eiji's projectiles or 2 of 3 of Izanagi's projectile volley.
Some weapon trailing edges should have used different colors, such as Boy, but other than that weapon trailing here is superior to that in Last Bronx.
A lot of levels on URA could have used work, especially the FV background engine they used on it. It was never synched for perspective. D-Xhird fixes that problem. Perspective shifts downwards only though. Some backgrounds on D-Xhird could have used some more work, such as Sabrina's stage. The sky should be colored black rather than brown. Some stages are fairly dull, like Schnieder or Karen's but there are better looking levels. Sanjuroh's stage background reminds me of URA's Verm stage. Boy's stage has nice looking scrolling clouds, some rain effects. Saotome's stage is pretty unique and seemingly fitting for the character, transparent shapes scrolling around. Kohjin's stage uses a transparent cloth for its walled arena. Venus stage is bit too bright with the purple. Izanagi's stage however is perhaps the most impressive of all. The background is the Horsehead Nebula, pretty nice effect goes on here, with the nebula gas. Asteroids also just fly by the stage. They start from the distance and then decrease in size after they go off on thier merry way. Eiji's stage is very colorful and pretty. You see transparent clounds circle the tower of Babel through the windows.
There's even a extra stage, Ice or soemthing where the match takes place in an enclosed ice arena. Layers of transparencies can occur here if you angle things right. Tilt the view so you can view through two ice walls, at the angle they meet, and look at the ice mist, even the extra ice ceiling, if you can angle it right. It works without glitching or dissappearing sub-layers.
There's even a trick ot get Karen't to have a transparent skirt, which uses some type of effect to achieve, though nothing major.
You need to play through the game to notice some of the effects used per stage. Not a whole lot per stage but when you take them into account collectively...
Almost forgot, light sourcing is a plus but downside of it is the characters having to have cruddy looking FV style transparent effects for shadows.