I always considered Strider 2 to be the last best hope for 2D games on "Next Gen" systems. If only that would have really caught on. I don't think all was lost, but it would have been tremendously helpful.
The amount of skill required to make a 10 pixel square to look like ANYTHING is amazing.
If there is one group of game designers I respect the most, it's the artists from the 8 bit age. And of those the ones I respect THE MOST would be the Gameboy designers...most of them not only did the graphics but also the sound and programing.
There's always hope...I think total 3D, if it ever comes, is at least a decade away.
However I truely believe that there will be a point in time where systems will be powerful enough to run 1:1 res 2D games @ 720x480. If you think Guilty Gear X looked good...wait till you see those games.