When drawing normally, you should have a light source, however if the sprite is to appear in-game, the shaded side of a sprite may be facing a torch, so it does't look right.. so pillowshading sorta is more consistant as no matter which way the sprite is facing, its shading remains the same.
you can also have the light source on top of the sprite so it's never moving. either way you'll have a shaded side possibly facing a light source. it's just sorta something that can't be fixed.
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....uhm.....