[DustyPorViva]

Dithering is used not only to dwindle colors down when there's no need for an obscenely high amount(dithering was mainly used when there WAS a limit on how many colors could be used), but are also used for textures. Dithering adds a rough texture to your pixel art that just one color can't replicate. And there's no need to use as many colors as possible in todays world just because you can. That's a poor attitude to take when developing anything. Just because today's computers are faster than they were five years ago doesn't mean you should code programs to be as big as they can just because the space is there. Control and optimization will is a practice you shouldn't skip with art.

And on the topic of pillowshading. Not one cartoon I can think of that is professionally drawn is pillowshaded. It doesn't make things look cartoony, it makes them look... pillowshaded. It just looks terrible.