Honestly, I'm shocked that this game doesn't get more love. For sure, the game itself is kinda goofy, but the soundtrack itself is pure gold. I'd like to see some more remixes than just Scuttle Town, but that'll definitely more than do for now. =D
Anyway, I personally think that a great deal of chiptune use depends on the taste of the user, but in general, I'd say the chiptune sounds are frequently overused. However, I must admit that I just love this remix to death (yes, I'm a chiptune lover). The chiptune itself blends in with the rest of the instrumentation quite beautifully.
Btw, that part near the end starting at 0:53 is absolutely killer! You simply have to love that high whine. *grins ear-to-ear* Now all this baby needs is a little more tacked on to the end. Seriously, it leaves you hanging there way to hard to just end it on a dime like that.