The charm of Japanese artworks will never be replaced by in-game renderings. Or at least, it's not the same thing.
Japanese JRPGs have long been driven by illustrations and artworks. From game manuals to artworks displayed directly on-screen during a conversation, this rather unique cachet has never really been used by the West (only recently have they done so). It was a blend that stimulated the imagination enormously.
Now that they've got the technology to almost render the artwork directly in the game as a 3D model, it's almost as if we've come to miss the old games. Perhaps that's also why HD-2D works so well for fans: it's the perfect combination for recreating the atmosphere of a JRPG while retaining that precious pixel art.
(I know, Star Ocean 2 remake isn't HD-2D, but the effect is almost similar).
I'm not saying it's a bad idea to render artwork in a 3D engine, and it works very well in many games (even double AA, for example Trials of Mana has a nice graphic touch). Maybe we've become too demanding, because back in the NES/SNES days, we'd have done anything to get Visions of Mana & co.
But contrary to what has been said, there are many variations and different renderings in Japanese artistic representations. Sometimes, I'd say that in modern games, the Japanese have trouble with color, which gives them that tangy candy look. They sometimes overdo it, and from a Western point of view, it's this overdose that's visually shocking.