I think handpainted has much less of a place in PBR. I'd go so far as to say conventional 'handpainted' is pretty much the antithesis of what PBR is trying to achieve. But if a developer wanted to drop PBR/next-gen lighting/post-processing, and just go with handpainted, I'm sure nothing is stopping them.
Not sure if anyone mentioned it but borderlands looks well, and they from what i know have handpainted textures. And nicely stylized graphics can look better than wannabe realistic graphics.