The animation is a little funky, but it does add to the surreal quality of the film, which would probably not have translated well with live action.
The story is a little trippy, very surreal, and if you're not prepared for it, disturbing. The surreality isn't clean; it's murky and confusing, which I think is a deliberate choice on Linklater's part because it echoes the effects of the drug D. You go along for the ride, not really getting to be a passive observer.
If you are prone to acid flashbacks, this will trigger.
If you're a fan of David Lynch, I'd recommend this movie.