I wouldn't have guessed it, but deviantART artist Theresa Cartwright has a whole gallery dedicated to proving the naysayers otherwise.

They don't just include video game characters, either. Everyone from The Last Airbender's Aang to Breaking Bad's Jessie appears in that gallery. Even Jessie's meth head makeup is somehow, slightly, oddly charming in the squarified imagery in there.

Squaracters [deviantART via Dotcore]