That makes sense, just one remark:

> I think first and foremost, using dither patterns is just a lot more authentic to the old black and white visual style Obra Dinn is emulating. Go on YouTube and watch some clips of Shufflepuck Café or The Manhole and you'll see that it's all hand drawn art specifically designed to be viewed in 1-bit, and it's all based on dither patterns, not error diffusion.

That's true for ordered dither patterns like Bayer, which Obra Dinn uses for some objects. But the rest uses a blue noise pattern, which stylistically has a "look" similar to error diffusion, but in terms of preserved detail it behaves only as well a Bayer pattern, so not as well as error diffusion.