Nice project.
Maybe it's just me, but how does Reduce colors work?
I've tried to load a png which I use as workbench background image just to see if I maybe can shrink its size by reducing the colors. I can see the changes when I use the slider or select a different palette but the actual number of colors stays the same. And when I try to save it as iff, it says that I have to reduce the colors to maximum 32. Which I did, well the slider is at 32 (or less).
It almost looks like I'm missing a button to apply the changes.
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