This same trick was later used to get 16k colors from the 256 color space, both for older monitors and for web images. The web used to have a 256 color safe pallet that made sense mathematically but was horrible visually. Tools such as ColorSafe made it so you could get full color photos as well as any color you wished to display using only the 256 web safe colors.
Same company (BoxTop) made ImageVice, PhotoGif, SuperGif, PhotoHTML, etc.