I wouldn't say that Chaos Engine AGA is worse. I like it with more colors. But like in Speedball 2 CD32 it's obvious that they just completely changed tones of some monsters, and kept others unchanged, instead of reworking the palette globally.
I must say this is probably difficult to rework a 16 color palette to another non-true color palette even with more colors. I don't know how many bitplanes are used but probably not 8 (else it would crawl) so they were stuck with 64 colors, and it would have been a great deal of work to rethink the whole palette of all assets (tiles, monsters, characters)
Speedball 2 AGA isn't so good because of all this copper/brass shit that breaks the steely look.
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