My Neighbors the Yamadas(1999)
This may be the first time I've seen a slice-of-life film in an animated format, and there is no better way to do it than in the uniquely quaint, dreamy and whimsical art style of this 1999 film.
This film really shows off the narrative and emotional range of watercolor art. The Yamadas' home has a blend of pastel colors that give you just enough shape to know it's inviting, but also leave so much room for you to imagine the rest. When Matsuko turns on the light, a splash of yellow drapes over the top of the frame to create a wonderful cozy glow. The world is realistic and unpredictable when interacting with strangers who pose a threat, but becomes a fuzzy dreamscape when it's just the Yamadas and the people they know.
I am not sure if I am drawing too many far-fetched connections, but I can't help but wonder if stories like this were heavily influenced by the historical backdrop in Japan as the country first started to confront the post-bubble world and turn away from stories of grandeur. No one is exceptional in this story -- in fact all the Yamadas are pretty incompetent, but whimsy, earnestness, and the plain love and care they have for each other make their stories feel worthy of attention.
While it's a good film, I would not recommend watching this film alone. If you can't find a theater that shows it, you should at least watch it with someone, or you might find your mind wandering away or physically doze off, in which case the entire message of films becomes lost as you conclude actually their lives are not interesting or worth your time.