What's harder is clipping against the sides of the screen. With no branching, there's no way to prevent the sprite from writing past the end of a line/screen (wrapping/mem-stomping). So, there does need to be a test per sprite to detect that case and fall back on a more complicated blitter.
The Allegro game framework had a compiled sprite jitter as a feature early on. So, that would be existence proof of them being used in games :) http://alleg.sourceforge.net/stabledocs/en/alleg016.html