marconelly!
Veteran
I am not aware there is any speciffic color intensity limitation with CLUT. It's basically reducing the number of colors in the texture to 16 or 256. Here are some very colorful and lively looking pictures with less than 256 unique colors:However, they do show off the limitations of CLUT compression somewhat well.
Now imagine how easy is it to make, say, grass texture, or brick wall using 256 colors when it's possible to make such complex looking and colorful images with the same amount of colors.