Didnt he also make millions of dollars off of a game that still has yet to leave beta and has the graphics of a NES game?
Your NES could do 3D?
I agree with this. PS1, maybe, but even then the amount of processing the sheer number of objects requires more than emphasizes the need for such simple graphics.
Most of the time the artwork you see people refer to as "8 Bit" or "NES-style" is quite obviously at least 16 bit in color depth and figure resolution. The NES only supported 8x8 pixel sprites, and IIRC a maximum of 2 colors per sprite, though this could be cheated with clever programming ti allow for more, just like the system's default 16-colors on screen limitation.
As for Notch? He used to talk about this site on his blog quite a bit, so what's the news?