I personally didn't care that much for it. How was this a parody? It seemed more like a zombie story played straight. The sprite work is quite good. It was just a bit too long. It was weird to see Peach use energy like that.
Of course, it was also weird to see her dressed like that. I didn't even recognize her at first! I thought this was some "Resident Evil" character I hadn't heard of. I'm not familiar with the games okay! The M on Mario's hat looked like an H.