Sorry, blurring through topics at light speed and here's my quick response:
Yep, it's a cute movie. I love the animation style. Got the typical, but highly appreciable Studio Ghibli touch. The characters are not going to be epic or amazing in this movie since the plot is a bit more subdued. But the theme is cute. Not exactly your "Little Mermaid" inspired characters, but Ponyo herself is slightly comparable. Her methods to becoming a human are quite different though.
I would recommend this movie as well if you fancy a cute story, lovable characters, a great soundtrack, and lovely animation. (Just remember this isn't going to be a Princess Mononoke or Howl's Moving Castle. It's more comparable to My Neighbor Totoro.)