I decided that converting my pixel images to vector through Inkscape was a lot of work and it couldn't convert 16px images without being resized first. So I figured out I could use the "Create Object Mosaic" feature in Illustrator, it does exactly what I want.. The only problem is that it creates a 16x16 grid no matter what, and all the transparent pixels are filled in with white.
Is there any way I can set it to ignore the transparent pixels in the image? Or a better way of doing it?
Here's some visuals, starting with the options I use:
What it outputs:
What I have to delete each time: