There isn't a runnable implementation, sorry. I only talk about it casually, at a high level.

If there is interest in this sort of thing I will go back and detail it at a later date. However, I will be including more like this plus code, scripts, makefiles, etc in my "making of the game" book.

This appears to be a game (in development) for a handheld device I hadn't heard of. There are a few other posts about it on his blog.

I didn't see any code, but it sounds like the post was detailing how he marks (manually) which section of his models will have a dither pattern -- basically just masking.

There are a a bunch of posts about it if you go to his blog index, there are only 7 pages so it's easy enough to flip through them, they're all labeled with the DailyDriver name. There might be something in there about the render process.