I wouldn't say that it holds up well. A friend bought the DVD and we watched a couple of episodes in April. Like I said, it was cool until the nostalgia wore off.
Compared to cartoons now? Depends on what you're comparing them too. I haven't watched Saturday morning cartoons in 20 years (being 33) so I can't tell you much about what kids watch tody, but I certainly have seen some dreck.
BUT, there are some absolutely awesome adult audience cartoons in the 30 minute format that simply nuke the D&D cartoon into the stone age. I mean, come on. South Park? The Simpsons? Drawn Together? Family Guy? A bunch of random stuff from Adult Swim? You're telling me the D&D cartoon is better than those shows?
And cartoons in the 80's that were better? Easy as pie. Thundercats. Transformers. The Smurfs. And that doesn't even cover all the weird stuff I saw in the 80's that was probably actually done in the 70's, IE Starblazers and their brethren. Heck, even the cartoon that had Scrooge McDuck and his nephews (whatever it was called) was better. Or at least better drawn and less repetative.
But hey, IMHO and all that.