Video Game Parodies Edit
A large number of Video Game Parodies on Newgrounds, both games and movies, use sprites. The Video Game Parodies Collection Page itself refers to this practice in its opening statement. This is largely due to the fact that until the mid 1990's, almost all games used sprites, and many popular games continue to utilize them. This means that Flash artists are able to use sprites directly from the games, making it easier to stay true to the original work's art style and incidentally being much easier than drawing a potentially large number of images.
The Sprite Crew Edit
This short-lived crew based all their animation work on Sprites. Although the crew didn't survive long, they have a significant legacy in the form of series they made and animators still on Newgrounds. Their SC Tutorial includes a section on how to use Sprites.