Well, the officially translated game is playable on ZSNES of all things (which to me says that the translation team did a pretty neat job), so it makes sense it works on more recent emulators!
Localization teams deserve props for undertaking this translation, specially since Seiken Densetsu 3 not only got an official translation decades later to english, but also spanish, french and german! That's beyond cool!
But I have to agree, the font is really small and far more annoying to read than the old Fan Translation, which stands very nice today. It's one of the shitty things modern / HD gaming has brought: tiny, awful subtitles and text. It's like most developers expect everybody to have a gigantic TV, or play in a desktop with a big display in their faces.
Some games become way too much of a hassle because they don't care about proper text size (or even worse, they think the obscure their beloved graphics during cutscenes).
On another note, I still like the old translation better in some aspects. Besides font, some of the names for cities and such I like a bit more (Forcena > Valsena, Navarre, Nevarl), but that's subjective. It's great that it has released after so many years worlwide, though!
Even more, that remake looks really up my alley and it's probably my favourite announce from the E3. I'm so happy to see the series alive...
Hoho, I didn't know the existence of that hack, sounds really fun!
I made several of those for a bunch of games, and I actually looked at Seiken Densetsu 3 a fair bit to see what I could change, but Sin of Mana sounds really exciting and has many changes I thought of myself. Thanks for mentioning it, I can't wait to check it out!