Indeed. It uses a 6bit + 2bit FRC in order to achieve the 4ms response time. That's why the banding and the color saturation appear inferior to the 2405 Dell model as well as the 244T Samsung model.
It's also done to shave costs.
The Dell 2407WFP solution is somewhat akin to 3dfx's 22-bit-output-but-rendering-internally-at-32-bit shenanigans from years back. Sacrifice color accuracy and use a dither to approximate image quality in order to gain speed.
However if you're a stickler for image quality and color accuracy, the 2407WFP apparently isn't for you.
As for CNET, pfft. I haven't trusted a review from CNET in years. They're rather amateur and have been since their major tech heads left after the net bubble burst.
I rank them no higher than SharkyExtreme these days.