And a direct link to the canvas cycling demo mentioned in the talk, as well as the blog describing it and a Q&A with Mark Ferrari:

http://www.effectgames.com/demos/canvascycle/

http://www.effectgames.com/effect/article-Old_School_Color_C...

http://www.effectgames.com/effect/article-Q_A_with_Mark_J_Fe...

Sadly, Joe Huckaby (who implemented the web-based demo) never got around to finish the promised drawing tool. I wonder if any other pixel art programs since then have added interface support for color cycling.