Sure, pixel art was born out of necessity, but then it grew into its own unique art form. Just like any medium (pencil-on-paper, oil painting, airbrushing, wood etchings, etc.) it imposes limitations on the artist than can lead to interesting results that are unique to the medium. Pixel art is very much alive and both veteran and newschool artists are doing
amazing work.
Sure, most pixel art is not "high art"... but what videogame art can be considered "high art" anyway? More generally, is "high art" even being produced nowadays? And if it is, do I even care? I either like the end result or not. Plus, if we're honest about it, 99.99% of all sci-fi, fantasy and game illustrations can easily be considered "kitschy", but we still love them.
But then I'm heavily biased because I grew up with C64, Amiga and DOS games, and I was also into producing pixel art back in the Amiga days in DPaint. I also like game art that is more abstract; one of the things that is ruining today's gaming in my opinion is that everybody wants to be hyper-realistic and "literal" in presentation.
Another important consideration for non-artists: I takes a *lot* more time to produce high-quality game art (e.g. static background paintings) at 1920x1080 vs something like 640x480. The thing is, if you have more resolution to work with, you really need to put it more details otherwise the final piece looks like just a sketch. I can see that sketchy "style" in too many indie games and absolutely can't stand it (it's not really a "style" as it's really about saving time & effort while still producing art at higher resolutions). Personally, I'd take art carefully pixelled in 90s Bitmap Brothers / Psygnosis style in 960x540 or as low as 640x360 over sketchy 1920x1080 any day.
In any case, here are some recent(ish) examples of great non-hipster pixel art (Thimbleweed Park was pixelled by the one and only Mark Ferrari). None of these have any palette restrictions, and to me "true" pixel art always has a limited palette, but they're still great "modern" examples.
Thimbleweed Park
Thimbleweed Park
Gemini Rue
Gemini Rue
VirtuaVerse
VirtuaVerse