Previous readers know about the Beautiful Pixels API game jam concept. I'm tickled whenever I see others with the same idea. Such as
Post It Shooter, an experimental game by Petri Purho:
A Space Invaders mini game rendered with a post it note style. ;) Well worth seeing it in motion... download or youtube video (it lessens the effect since it's a downsampled resolution, at least watch in HQ).
Frameranger, the winning demo at Assembly 2009 by CNDC, orange, & Fairlight:
At 5 minutes in, there's a great shift to 8-bit music style and a block push pixelated render target. Check out the capped.tv video.
oh, demos... i love you, you make the most beautiful pixels.