Spike wrote:making it ugly appears to be your goal
I wouldn't call it "ugly", but "gritty". With dithering, it actually looks really good to me:

Losing this hue banding makes Quake look too bland, too clean. The hue banding gives more personality to the game, making the darker places look more dirty. Losing this "dirty darkness" look is a loss of visual detail, which is unacceptable to me.
Spike wrote:if you're doing direct-to-rgb rendering (ie: paletted texture, rgb framebuffer)
Yes, that's how I'd implement colored lighting.
Spike wrote:you may get 3 times as much banding as each light channel starts to band at a different point, but [...] may actually help image quality much like dithering does
Hmm, that's something I'd have to see in action to know if it helps without making the lighting more bland. Gotta install some programming tools on this new laptop...
Spike wrote:low green lights will be brighter than low red lights
That's something I'd like to avoid. Colored lighting shouldn't have banding. Plus, "GL" players are used to uniformly-shaded colored lighting.
So, I'd like to have the mono lighting with the hue banding of the colormap, while simultaneously having the colored lighting with no banding. Figuring out how a blend of them should look is part of the challenge. The other is to implement this in a fast way, so the mono lighting don't get slower to render and the colored lighting don't make it much slower.