Yeah... I saw years ago someone using what they called 'phong shading' to smoothly dither along a gradient of only a few colours. It was very impressive. All I can find on google nowadays regarding PHONG is to do with shiny 3D stuff. bah.
I guess all I meant was it would be better with dithering :)
phong is overly complicated if what you want is dithering. Floyd-Steinberg is a better deal. SmileBasic has 32 bit RGBA (or ARGB) so that's the full spectrum.
The banding is always present, even with full 24 bit colors. That's just how sensitive our eyes are. I have yet to see a gradient demo without color banding.