If you examine DOS games, and some older Genesis games, they use dithering.So do a lot of the GBA and DS games. In fact all the CV games of those two systems us it so much that it comes off as being cheap and non-professional. That's what bothered me about the DS titles. The GBA titles were fine as I expected the use of dithering, but there was no excuse to use so much of it in a next gen hand-held system with much, much more capability then the GBA had to offer.
PS. Your sprite is much more visible against a blue background there thernz. Now we can see all the juicy detales
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