This is screening at Fantasia (along with many other gems), for all those Montreal SBers http://www.fantasiafestival.com/2011/en/
Is it weird that I think this would be more interesting if the Kappa looked more like a Kappa, and not just a guy with a mask and some gloves on? I mean, I get what they were going for. But... just saying.
Actually I totally get what you are saying. (Disclaimer: my taste in movies has been classified as 'weird,' among other descriptives) I think what they are going for is sheer nonsense comedy, sort of along the lines of Happiness of the Katakuris or Symbol; i.e. no analysis please. That guy in the mask, well, not sure what to say about that. Sure, I'd watch it, but I could really go for some decent Kappa or Yokai movies too.
I think this was shot in single takes over like 5 days, so, yeah, the low budget was embraced. There's Death Kappa, which I have, but haven't gotten around to seeing yet.