there are many reasons i guess but here is one... as you said its a conversion... had it been the other way around it may have been using halfbrite system or whatever to gain more colors on screen etc....
btw, some games look better with 32 colors but yes.... some 256col games looks amazing.
Crucial ones?
HAM is 4096 colors from a pallette
256col means 256.000 colors
another one?
Amiga 1200 never did sell as good as the A500 did and therefor software publishers and devs always tried to walk on safe ground when it came to dooing AGA (256.000 colors) conversions etc..
(maybe you see it now..... )
