I did have my hopes up for the portable department, but technology is becoming so advanced that they can run 3D games now (DS. PSP). Cellphones are even able to run 3D games now, which is hard for me to believe. Back then, we only used pixel-art because of limitations, so apparently, when it is used now, it must be for visually artistic purposes. As long as the companies that put artistic value into their video games and that are willing to risk their sales to express themeselves stay in business, then pixe-art will continue to exist. As technology advances, pixe-art looks older than it already is in comparison. The masses don't want to see square, flat graphics and hear bleeps, and bloops, the masses want to play games that push the limits of technology; they thrive on realistic visuals, not artistic visuals. This whole idea of making video games to look so realistic is turning them into simulations more than works of art.
Also, indie gaming always contributes a large amount to pixel-art, now-a-days (although, i'm not sure if that department is growing or shrinking).
EDIT: I guess I fell a little offtopic, but you know what I mean. Pretty much what vierbit has said.