Double Dungeons animation is better and has more shading. Granted, it's smaller.
Shining in the Darkness is also better. I suspect they reused alot of ideas from PS1 to do it, anyway.
My favorite animation in games comes from Flashback, definitely.
I also like the animation in some NES games, even though its simple (Faxanadu and Battle of Olympus)
Shadow of the Beast, also. Not alot of animation, but the stuff that does animate, animates great.