Why not use more than the 4,096 colors in the web-smart palette?
Because many users have monitors that support 16-bit color (thousands of colors). The web-smart palette is a compromise palette that works well at 16-bit and higher.
Why not use the traditional web color palette?
In their September 6, 2000, Webmonkey article, “Death of the Websafe Color Palette?”, David Lehn and Hadley Stern established that the 216-color “browser-safe” palette that has traditionally been used in web design does not consistently work across different browsers, platforms, and monitor resolutions. Lynda Weinman, who first popularized the browser-safe palette, says that “the justification for using the browser-safe palette has diminished greatly if you are developing your site for users who have current computer systems.”
Does moreCrayons.com follow web standards?
Short answer: yes. Details here.
Is the moreCrayons palette available for download as Illustrator or Photoshop swatches?
The grayscale portion of the palette is available for download as a Photoshop swatch palette. Other swatch palettes are in the works.