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Thats fine thinking for a static picture on a screen but in things like PDA's where the pixel color may change depending on the app that is in the forefront having those extra color bits would make it so you don't have any color washout or slowdown of the PDA as it rewrites the color pallets.
At least this is the one drawback I see in the real world scenario with multiple applications running...
Personally I would love to see the more colors but not at any expense to speed or to battery life.
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