While using the Gallery in 2.0.1, he noticed that the application used 24-bit color, but after an update to 2.1, Gallery only used 16-bit color.
DisplayMate's report said this:
Presumably these errors, which affect both the Droid and the Nexus One will be fixed in a future software upgrade, so the Droid will at some point return to its original excellent 24-bit color and scaling. The quality of the 24-bit color and scaling for the Nexus One remains to be seen...
According to TalkAndroid, Google released a statement saying that they developed the Gallery app in 2.0.1 with 24-bit color, but that Cooliris developed the Gallery app for Android 2.1 with 16-bit color.
Image from Gearlog