Where the crap are we getting 42 colors from? lol
You can have 512 different shades of stuff (2^9).
16 palettes of 15 colors = 240 + Common Color = 241 colors for the backgrounds.
oh wait I shouldn't read after just waking up.
The PICTURE you gave has 41 colors.
Yes, you can reuse colors in each palette.
Cause lets say for example you have a nice water palette of 15 blue/tealish colors, and then you are like oooo I need to make a building!
...thats say.... gray stone, with blue windows.
You probably wont manage to get the windows onto their own tile sections in order to use the same blue palette as the water unless you're REALLY clever...
so you can make a new palette for the building that has grays and blues, and you wont have to worry about it. Even if the blues are duplicated.
I don't think of it as OMG, I CAN MAKE SUCH HIGH COLOR BACKGROUNDS! 16 PALETTES!
I think of it more like "Hey I can have 16 of these, so I can use them to tailor to specific sections/things on screen without worrying"
Plus, if you're reallllllly batshit insane, you can do alot with 16 colors
pardon the small ass image. I cant find a good one. That's Fray for MSX. It's 16 colors INCLUDING sprites. lol. the background and sprites share one 16 color palette because its a bitmapped screen mode game.
Insane. i wish I could art like that.