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...
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