Actually vector is used a lot now. It is default for a lot of mobile game developers because it allows to update graphics to higher pixel density when devices and hardware become stronger and is easier to use with making marketing material. Honestly, when you are good at vector it becomes faster than raster since there is no cleanup phase. It also means you don't get 1 star reviews because the art "looks pixelated". :/ Here are a couple of picture's from my day job made in vector:
But it depends on what art style you're going for; if you like pixel art there are plenty of examples that prove that it works. So figure out if it is really vector you want. Pixel art works fine. Just make sure your art fits the game. Don't chose your artstyle based on assumptions like few games use pixel art. Analyze what kind of game you're making; figure out who it appeals to. Develop an artstyle which will both appeal to your audience and communicate what the game you're making is.
Here are the industry standard tools:
Vector: Illustrator; you will also need a mouse.
Raster: Photoshop; you will also need a wacom tablet.