And you shouldn't compare with PC graphics, but more with other 8-bit homecomputers of that time (and I don't mean ZX Spectrum ofcourse, although it DID have a more colourful palette :-P )
Of course you should compare it to early PCs, because early PCs (8088) were 8bit. Just compare it to all the machines available prior it's launch. The C64 with 16 colors, SID sound and 64K was revolutionary. When finish, check it's priced against the competition.
