What's the primary use case you had in mind here? In the example I see it generating a palette of 256 colors and then using them, but it doesn't seem to correspond to any modern use case. AFAIU one currently needs dithering either as part of print/display process (but then you have a fixed palette), or for compression, but I think this makes sense nowadays only with very low color count, like 16 max?
Colour quantisation is still one of the best lossy image compression formats for when you have almost no memory or CPU.