*claps* Very nice

Yah it's really simple you can just open up all the textures on Gimp and there is a tool to reduce the number of colors .

I know this is old now; but just so things are clear.

Minecraft renders images on the screen using something called the OpenGL API..

In OpenGL; 'geometry' is associated with 'surface' materials which have images associated with them called 'textures'..

Rendering geometry with OpenGL involves generating 'fragments' for each pixel of each texture that will appear on the screen..

The primary limit on performance in Mincraft is called pixel fill-rate ( or fragment fill-rate in a textured scene )
It doesn't matter what's inside each fragment, it's the sheer number of fragments which can become slow to compute.

Anyway we all have fast graphics cards running Opti-Fine nowadays right ?

Technically, anything other than 16x16 texture packs will increase lag. The color scheme or complexity of a 16x16 pack can make no difference.

I don't think this'll reduce lag, since its a 16x16 pack, the game still has the same amount of pixels to load.

Could you do a pony texture pack? with rainbows and stuff?