*if* it can be optimised, I'd guess a lot of games could be a lot better. I am not the best guy to say this, but I don't think this is an easy thing to do.
It's funny to look at a longplay of this on youtube and the game is incredibly smooth, probably because it's emulated like you stated. So I guess even to compare with the Atari ST version, I'd have to play on real hardware.
And it looks really weird with that blue/grey shared, since it looks like the tree is transparent or something. I personally think the background still looks pretty good even with they grayblueish color, but anything else that uses this color may look bad.
This game was *very* popular here in Brazil, because the SMS version was localized using a very famous brazilian comic book character. It was so popular that some versions of the SMS actually came with it as the built-in cartridge.
That's how our brazilian version looked like:
[ Show youtube player ]
Except no brazilan Master System has FM, so it's funny to hear it with FM music