The Monochrome Boys are full of shit. They themselves have way more than 16 shades of more than just gray.
Edit: going by my copies, the VGA disk version has "look at me I'm in VGA" and "256 colors for one wimp". The CD version adds 16 colors EGA... and strangely 32 colors EGA, and a completely different spoken line -- "What's this? You'd have to be a blitherin' idiot to waste all that color on one little bitmapped wimp, har har." -- and the "look at me I'm in 32 colors" line has no sync. My EGA disk version meanwhile has hardcoded lines (like the VGA version) for 16 color EGA and 256 color VGA.