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Do a lot of people have a hatred towards the art style? Some of the most beautiful games I've ever seen were cel-shaded, the graphics hold up really well over time as well. Though, I guess that's why not so many developers use it, they'd rather have the bang of good graphics now and not have to worry about the future.

Certainly Jet Set Radio, Wild ARMs 3, Wind Waker & Valkyria have had wonderful cel-shading. DQVIII as well, though I've never actually played the game myself.

Perhaps that's it actually, they only work really well in certain genres of game, so their usage is kinda limited.