#cash cow
>> AFAIK you are still limited to eight [sprites] on any horizontal [raster]
line …
Yes, that's generally true, although more have been created in "ghost" mode by
flipping on the interlace signal…
>>I think the original idea was to use them to extend the character set …
Doubt it. The concept of a "movable object block", or sprite, allows an
object to pass across a background with no need to refresh the background
picture to make it reappear. It could be argued that such a general concept
has wide application: for example, to create a mouse pointer or a modest-sized
"requester box" over a background screen. But I think that the chip design was
almost totally aimed at game usage: things to shoot at, and missiles to do the
shooting. Commodore targeted the VIC-II chip for sales into the video game
market, not just for the 64.
–Jim