Someone who's pixilated is a bit mischievous and eccentric, like the wacky man in your town who wears rainbow suspenders and breaks into pixilated dance routines in the middle of the library.
It's easy to confuse pixilated with pixelated, which means "magnified so much that you can see each individual pixel." But instead of pixels, pixilated comes from pixies, the impish mythical spirits. Most experts believe that the word began as pixie-led, or "led astray by pixies." So if someone you know is acting as silly as if they're under the influence of pixies, you can call them pixilated.