I wonder if the replay footage-like system is possible in 2D graphics. I don't/can't remember if 2D games have that kind, but I know they are possible to make in 3D games. Maybe Ultimate Fighter game has it? I see examples from Tekken, Virtua Fighter, Dead Or Alive, etc.
Sure it is, and it works the same way 3D games do. Basically, you record inputs and state variables for a limited time period on objects. Then, you just reapply them manually in a playback. I'll warn you though - it's extremely tedious work and memory intensive too. It's why you don't often see it outside of vs. fighters, and even then usually just limited periods, because every new object is a whole new set of variables to collect.
It's basically the same principal behind serpentine objects (@Bloodbane has demoed some of these) or the power up spirits in NG2. Watch this video and it will give you an idea.