8 bit textures?

Kind of a weird question:
I was jus thinking about ways to lower texture memory footprints, when my 8bits Myst wallpaper suddenly reminded me how firsts (late 90s) 3D game engines used 8bits textures.. Many (most?) textures can look just as good with a custom 8 bits palette and good dithering, and the difference in file size is huge. I've personally kept this habit of converting images to 8bit because of websites. Most of my pictures are 8bit and most people don't notice.. (although most people may not care either..)
These days all games use 24/32 bits texture formats, but is it still possible to use 8bits formats? Especially in Plasma? I've never heard of DXTC handling 8bit but I might have missed the info..
I was jus thinking about ways to lower texture memory footprints, when my 8bits Myst wallpaper suddenly reminded me how firsts (late 90s) 3D game engines used 8bits textures.. Many (most?) textures can look just as good with a custom 8 bits palette and good dithering, and the difference in file size is huge. I've personally kept this habit of converting images to 8bit because of websites. Most of my pictures are 8bit and most people don't notice.. (although most people may not care either..)
These days all games use 24/32 bits texture formats, but is it still possible to use 8bits formats? Especially in Plasma? I've never heard of DXTC handling 8bit but I might have missed the info..