I always thought the technique was called billboarding. Maybe BLOB is some acronym of that. Basically, anything that should be 3D but is easier to do in 2D, like explosions. Actual fireball explosions are very hard to model, but texture a billboard with an explosion animation and you're laughing. Admittedly, this does lead to identical explosions, but still, most professional games do this and get away with it.
Trees you can do by only rotating the plain around the y axis, since they will never rotate around the x or z axes (plus it looks better).
Collectable powerups could be billboards as well if you can't model them, or need some flashy effect that you can't do in 3D.
Once I was but the learner,
now, I am the Master.