That's the low intensity dark green-dark red-brown-black palette, not the high intensity light red-light green-yellow-black palette. The high intensity mode was about a quarter as garish as the cyan magenta mode, which won't make your eyeballs bleed, but it's still a mite bit uncomfortable.
The dark green dark red brown black palette was indeed probably the least bad palette, but it suffered severely from a lack of contrast. That's why the text is hard to read, because it's black text on a brown background, not because of the resolution.
The reason the cyan magenta white black palette was so common is because it had both black and white, meaning the text was easy to read.
The Tandy graphics adapter allowed a programmable palette. It was still just 4 colors, but the programmer could choose which 4 colors they were. (out of the 16 colors a CGA monitor could display) This was such a minor increase in complexity for a 10x improvement in usefulness it's shocking to me that IBM didn't include that in the CGA.