Yes, Animal Crossing is cel-shaded. The original Animal Crossing Gamecube game is a cel-shaded game, and is in the form of 'Toon Shading'.

cel animation is usally hand drawn, therefore has more detail in the art.

Shaded computer animation images are known as raster graphics.

I believe this is a poor translation for a fan cel.

I am somewhat new to cel animation, but I know it has something to do with cartoon rendering. daz studio is free and has a good cartoon renderer.