
But as soon as 3D technology became readily available, let's say during the PlayStation era, it immediately became a choice.

Now, I agree with Reynolds that in the past, when 3D was not an option, game artists were just trying to do the most HD thing they could. The labor involved is part of the craft, and is visible in the result. It evokes a different style – it gives the artist a feeling of being close to he work. But people still learn oil painting as a craft. You could get a much higher level of detail with greater ease using photoshop (that undo option!). Well, here's an analogy for you: Why does anyone still use oil paint? Oil paint is unwieldy, it's hard to master, and you must commit to your decisions. So if this stuff is easier to scale, and easier to make, why does anyone work with pixels? See UbiArt in Valiant Hearts, or Spriter in our own game Gunhouse. New tools are also popping up around the industry with the aim toward making simple 2D animation easier. See Skullgirls for an example of excellent illustrative 2D art. Now, the thing is, you could also do 2D art with illustration or vector art, and it would be much more scalable.

Take a look especially at his Street Fighter 3 versus Street Fighter 4 example, but suffice it to say, you can create some amazing animations when working in 2D that are much more labor intensive to recreate in 3D.

The article does a very good job of explaining why pixel art can be beautiful and unique, and I highly suggest that you read it if you haven't.
