Come to think of it, HAM8 already looks better than 16bit modes, provided the base pallete is choosen carefully.
@Karlos
"HAM was (is) great for static images...."
And, as you know, animations, cause they're precomputed.
Now check this idea, HAM10 raytraced anims for an AAA based VideoToaster back in 93, they would've taken the world. Commodore really had some corrupt management going on...