Nexus One Color Banding

Now we don't mean to cause any undue alarm here, but check out the live wallpaper on the Nexus One above. It doesn't reproduce perfectly in the picture, but there's definitely some major color banding going on, just like we saw with the photo gallery in Android 2.1, first with the Nexus One, and later with the Droid, as the gallery went from 24-bit to 16-bit. I've been using that wallpaper exclusively since it came out, and this is the first time I've seen this on the home screen.

In fact, the ol' picture of Mars does the exact same thing if you plop it up as the wallpaper. Now we're not coders, but there's a pretty good bet there's some ones and zeroes being shared here. If someone wants to learn us a thing or two about this one, we're all ears. In the meantime, sound off in the comments. Anybody else seeing this?