hedwards: Because it always looked like ass. I don't think there's any way of making that look good. Plus, it's a ton of work. you need to get the item from multiple angles and it never looks good.
Avogadro6: Uh? No way, sprites are much less work than scuplting, texturing, rigging and animating a full 3d model, not to mention they're far less taxing to render.
I agree that they rarely look good though. Especially when it comes to dead enemies/inanimate objects that constantly rotate toward the observer, that's just creepy.
I'm not so sure about that. With sprites you have to do each one from scratch and multiple versions for every direction you might want to have. With models, you get to recycle a lot if you need to, plus it's one model per whatever no matter how many directions you like.
Also, you've got to hand draw each frame that you like. Which is a pretty substantial amount of work that has to be duplicated.
If you've got radically different enemies, then yes it is a bit more work, but if you're dealing with many different humanoids, then you should be able to recycle a large amount of the work.