>>432862313D models if anything should have been a revolution for Pokémon; no need to re-draw/re-animate the entirety or a large portion of the national dex with every new generation, access to a much wider talent pool of 3D artists, animators and consultants, and much more opportunity to focus on purely new content and gameplay (for which 3D models are also much more versatile and easy to adapt to than sprites) instead of polishing the same shit over and over again.
XY and 3D didn't kill Pokémon, Nintendo and TPCi did with shitty management and tight deadlines.