PNG isn't a great example because it can be used either with or without a palette. Thanks for expanding on what I said though, I didn't go into much...
Correct info but you didn't actually explain the distinction between sprites and images: sprite colours are stored directly in the raster (in ARGB),...
You may get some traction after you have more than nothing to show for it. Get something together and maybe people will be interested but nobody will...
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