Two questions:
- Is this approach also learning the palette? It is kind presented as a given here but it is of course very important for a good dithering.
- The loss function might work better on spatially downsampled images. The downsampling causes a mix of the image colors making the dithered image look more like the original given a good dithering. This also naturally removes the variance that is now penalized in the loss function as this is blurred away.