You could fit a 640x512 truecolour (24 bit) screen in just under 1Mb. I'd recommend a bit of FAST RAM as well, though.
Put simply, a chunky mode wouldn't use any more RAM than the equivalent planar mode. Planar modes only save memory if you're not using all 8 bitplanes, except HAM8, which is clever but not much use for games (and in theory you could have a Chunky mode HAM anyway).