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Originally Posted by R K
Unless I'm missing something, 320 x 240 = 76,800 pixels, so anything above 65,536 colors is only going to benefit the remaining 11,264 pixels, which is only a 15% increase in color depth.
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What you just said doesn't really make sense. What does the number of pixels have anything to do with the number of colors? If you buy a larger box of crayons, do you have to buy a larger sheet of paper?
Having more colors allows you to have smoother shades and less dithering. Think of it this way: Windows icons haven't changed much in size over the years but they sure look a lot better given the more colors they can have now. Try this in your windows display properties: Effects > uncheck [ ] Show icons using all possible colors. Looks bad now, huh?