My camera is a SX260 HS.
I'm fairly familiar with the palette mess (see also recent wiki edits). There's actually quite a few in the autobuild that implement the overrides - although I wouldn't be able to say how effective they are and whether there's any negative fallout from doing so.
I'm a bit confused by you saying that the grids use indexes into the camera palette, unless you mean 'the camera palette post-chdk overrides', as a test grid using one of the overridden colors certainly uses that
That said, it's entirely possible that even though the colors could be overridden, for this model (and others) the 2bit alpha LUT probably means that there's little chance of any other alpha levels. I forgot about that aspect