That would make 3D fighters look a lot better. My favourite fighters are still 2D like Marvel vs Capcom
A Dreamcast game used this technique. Can't remember it's name though
EDIT: Apparently there was quite a few like Jet Grind Radio and Wacky Races, noticed JSR has been mentioned above.
I really like this technique - the Gamecube has some special features to directly support this form of renderingl
Games were beginning to strive for realistic 3D images too much for my liking - this cartoon effect gets games back to being presented in the retro way