>>714895906
Wrong.
You handpainted to compensate for ingame shading or the 16^2 or 32x32 icon sizes.

Procedure has stayed the same for very long:
Cinematic model using a material library or get actor scans on a render model -> bake into ingame model -> possibly paint/touch up
>Artists get to sculpt every asset
Which is slower.

Tilesets and BSP got left behind for just modelling the levels as well, which is also its own can of worms.