I once posted in the first banjo-kazooie retexturing project my opinion about retexturing this game.
Banjo-Kazooie is the finest game in textures from all of the N64 games, there's no doubt about that.
However, there are many times when I wished the textures were cleaner. I loathed the N64 for its low resolution textures just because of seing this game. Don't get me wrong, what I mean is that the textures were so impressive that if only the N64 had had more power, this game would have obtained praises all over the world just for its graphics. Let's just say that BK was a game ahead of its generation.
With that reason, I've always said that THIS is the game that really needed re-texturing, but while leaving the ORIGINAL artistic style. As you said, most textures are better left by stretching, upping the resolution and adding a little bit of detail. Still there are some little touches that work great when added over the original textures. For example, you've added some kind of liquid-looking substance on some floors and walls, and I think those are PERFECT. That was a very neat idea.
V-King also added some neat touches on his textures, like the ground texture when getting near the entrance to Mumbo's Mountain in Grunty's Lair.
Adding a little not, most people who use texture packs for their games are people who have already played those games. So the thing they like most is playing an old game and seing NEW surprises. I'll explain: when you play Banjo-Kazooie for the first time, you get dazzled by the surprising interiors of Grunty's Lair. The architecture is so weird, and there's so many kinds of rooms that players may even pass their time just wandering about, looking at the walls and ceilings.
When you use a texture pack, you can get dazzled again as if you had never played the game before: you're looking at the places in awe, and keeping the game on, collecting jiggies to open new worlds just to see what NEW SURPRISES that world may have.
I'm certainly more than happy to see a new BK retexturing project, don't doubt that, and I sincerely hope that this project won't die, as it is, I think, the game that most deserves getting a make-up.
WoW! That was a long read. I guess I get waaaaaay too talkative when speaking about these things...