Rare has confirmed that Banjo-Kazooie: Nuts & Bolts' unclear text on standard definition televisions will not be fixed. The issue came to light following the release of the demo last week and now Rare states that the issue is "too expensive in terms of time, resources and money to alter."
SDTV haters aside, let's accept the fact that this is a serious oversight on par with Dead Rising's tiny text. Adding insult to injury, CVG points out that Xbox Live Arcade games must be playable, which includes text being readable, on a 14" SDTV. Too bad Microsoft doesn't seem to hold its first-party retail games to that strict standard.
Source - Rare community manager statement [NeoGaf]
Source - No fix for Banjo SD TV issue [CVG]