I use small sprites, the biggest of them is 64x64. The problem is when the camera moves(or objects are moving) they do it with some jerking\shaking. Also this is visible when the camera moves.
You can see it on the video(on the video it does not look so horrible, but in the realtime play does):
At 0:10 look at the big gray square stone's edge.
Sometimes you can even see a background through the gaps that these jerkings make