Ah, saw this awhile ago.
Really melancholic looking!
It can be very tedious to draw each character frame by frame, Spriter is going to help a lot, but its never going to always give you the perfect angles and stuff, I think you'll still end up drawing a lot of parts yourself!
I started off doing pixel art in paint over 5 years ago, and only started using photoshop for it maybe 2-3 years later.. That's where I got my patience to do sprites frame by frame xD
I'd put Loot-Pursuit here too, it has pretty good graphics, not great.. but it has a good style going!
<img src="http://www.gamasutra.com/db_area/images/igf/Loot_Pursuit!_The_Search_for_t/screenshot.jpg" border="0">
EDIT: Forgot to add.. Yokai!
<img src="http://playindiegames.files.wordpress.com/2011/03/yokai.jpg" border="0">