Oh wow! That truly looks amazingly well done on all levels, with a great idea too!

Now that's some outstanding Amiga-like dithering right there!

Looks really great! What is this multicolour mode all about? Wider palette?

Yeah, that's just oustanding. Wow!

There is no wider palette on c64 afaik 🤔

You can fake a wider palette by interlacing (switching colors on every second frame) etc., but this is plain multicolor mode, so just skillful dithering and adjacent color placement. :)