It's not immediately apparent how working in grayscale is advantageous to the end user. For instance: in my use case I have a particular set of 15 + transparency colors I must use. it seems like I'd have to export the grayscale result, convert it to 15 shades of gray then manually re-color every pixel. That being said I think this could be very cool! I'd rather "pixel bash" than purchase yet another asset pack.
Viewing post in PixelBasher Update - Sonic Firestorm comments
Eventually the goal is to have all sorts of color tools in the application. Per object color tint, global color palettes, etc. For now working in grayscale solves a lot of problems on my end. Sorry that it's a hassle to get the output to a specific palette at this point. I've gotten good results with blending color overlays on the output, but if you have a specific palette there will still be a lot of work in color replacing.
Thanks for the explanation. I found a YouTube video and even something on Twitter that demonstrated actual use. I'll keep a lookout for more videos like that as I feel I'm missing something. Are there plans for tiles other than for buildings/machines? I suspect with the right parts you could make Chibi looking characters/monsters.