Earlier quoted context omitted.
The 4096 color HAM mode was always part of the spec.
yes, it is, but it can only be used in very specific conditions (you cannot have the colors where you want all over the place), it's a pure hack.
You could also change those 16 colors for every scanline (horizontal line).
Overall there was a lot of control, but software such as Deluxe Paint did not support full possibilities of HAM mode.
Oh and, btw, EHB (extra halfbrite) mode has 64 colors. 32 colors palette + second 32 colors with brightness halved. http://en.wikipedia.org/wiki/Amiga_Halfbrite_mode