The new palette system is very interesting, I have an edited character by me called Primeus(originally by Ricepigeon) but he has Color Loss because the character is really a photo(Obviously a photo has more than 256 colors).
So, I think is very useful not only for specials effects, it is also very useful for joke characters like that:
Spoiler, click to toggle visibilty
About making palettes, for me making palettes is a nightmare in Mugen I remember I was making palettes for my edited Homer and was really a nightmare, but in Unreal looks very easy.
For this reason I think Unreal Fighter is really a hope for me(Specially if I am specialized for making joke characters with more than 256 colours).