You can find or cheaply buy premade models that are textured, rigged, animated, etc.
If you're avoiding normal maps, you're avoiding the wrong part of the art creation process. Professional artists don't usually paint those by hand; they're mostly all automatically generated by the artist's tools.
And of course your characters will be affected by the lighting, cel-shading or not (cel-shading is still *shading* and still requires light calculations... and the screenshots of Megaman Legends are _definitely_ lit and... definitely not cel-shaded, at least not on the main character).
Of course, you just drop all the basic art assets into a Unity or Unreal game and you get all the graphics math done for you and you can concentrate on the hard parts of making a game that you're overlooking (making a fully modeled, painted, rigged, and animated character; designing and implementing all the gameplay; actually finishing a project instead of getting bored and quitting two months into it; etc.)
I don't think you could normal map a face automatically with low res models in a way that looks good. But then again, I know jack all about it.
In Megaman Legends the textures/shadows on characters are pixel art, and drawn, which is what I'm referring to. I meant cell shaded as in the aesthetic style of 2-3 tone flat colors using pixel art or otherwise, as opposed to a shader that effects lighting. The environments are lit, but it's pretty basic, and just to show depth. MML2 appears do some lighting with the characters as some of the screenshots have colors with a slight gradient, but I can't say what it is specifically. I'd be aiming for flat colors anyway.
Unity certainly isn't going to do graphical work automatically in any way that's graphically acceptable, everything takes some degree of tweaking and work. And no, I'm not overlooking any of the other stuff you mentioned. That's just stuff that's necessary to development, and I'd be more interested in how to simplify those processes the same way I aim to simplify visuals.
Let me tell you, yes you can!
It depends on the tools you use (some are better at baking normal maps than others, 3D Coat seems to be much better at it than Blender for example), and your own skill at creating high poly and low poly meshes (if your low poly mesh is crap, baking will be a nightmare, but I guess than actually rigging and animating that mesh would be even worse of a nightmare).
Of course, creating detailed high poly assets is very time consuming and will require lots of skill... which is exactly why many low cost Indie games go with low poly assets without detailed normal maps.
That doesn't mean that every kind of normal map will cost you many hours of time to create. For technical assets that might be much less of a problem... actually, ANY asset that is not a realistic looking human is easier to create a high-poly asset for.
Why so dismissive of Unity? Its not the most advanced engine out there, and true, you still need to tweak and configure yourself. As long as you go with a simple 3D game and have the skills, using a framework or writing from scratch CAN be the better idea. But really, you don't seem to have this kind of skill, so Unity WILL be faster for you (unless you want to learn to write games from scratch of course).
Let me tell you, when you talk about "simple 3D art", and you actually mean it, Unity is the right engine for you. Name one thing that needs to be tweaked in Unity to make simple 3D graphics possible, actually. Should be pretty much out-of-the-box when you leave out normal mapping, postprocess effects, or any kind of complex lighting.
The shader discussion is definitely good for imrpoving the looking. As far as the assets themselves, honestly, Unity Asset Store and OpenGameArt.org
It does limit what you can do (unless you're going for generic fantasy / horror / scifi) but it can cut out on the amount of assets needed A LOT, especially if you spend some time researching and make some artistic compromises.
There's also a lot of ways you can creatively cheat and reuse assets. Here's an article from our own game: How we Recreated All Character Models from Scratch in Two Weeks
I mean, buying assets sort of goes beyond the boundary of working on a game alone. It goes without saying that working in a team or outsourcing stuff will be easier, however this is more about ways to simplify development as opposed to..avoiding it lol.
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Are we now going into a philosophical rant about what is the correct way to 'lone wolf' game development? About what is correct game development and what is not? Really?
There was a good article on gamasutra about that by some Indie devs months back, about staying scrappy to survive... sadly I cannot find it, and it is actually about surviving as an Indie, which might not apply to your case.
Fact is, as an Indie, especially as a lone wolf, game development is all about making compromises (as you do in the opening posts by trying to go with simple 3D graphics)... for many that means that they come to the realization that they cannot draw or 3D model to save their life, and rather stay sharp in programming and/or game design, concentrate their precious little time on that, so they compromise by outsourcing art.
Which is an extremly clever thing to do. Creating art is, well, an art, and needs 1000's of hours of expierience to get to proficiency. Not many programmers can do that while keeping their programming skills fresh, AND then having to learn about game engines, 3D graphic techniques and game design.
While on the other hand a trained artist might crank out a simple asset in mere hours or less, thus quite cheaply, while the end product looking vastly superior than anything you could have done in days and weeks of work (especially if you don't work on it fulltime).
It is completly fine if you want to also do the art alone (I do so myself, but then I was always doing art as a hobby besides being a fulltime programmer, and I have to say my personal projects get slowed down considerably because I take the double role of programmer and artist)...
Just do it for the right reasons, and be aware that you throw out the best way of finishing your game/project in a sensible timeframe instead of wasting years even on a simple project. Which can be completly fine if you do this as a hobby, and you are interested in art.
If you CAN find an artist that is willing to work with you, and shares your vision while not costing you an arm and a leg, you SHOULD try to work with him definitily. It would make you more than double as efficient as you can now concentrate on one thing while the artist frees you of art workload. Of course finding such an artist might not be that easy...