The panel itself is 1-bit, and is definitely a concious choice they made. I can't remember where I read it, but the screen was the most expensive component, and was likely pricier than color options. It's also super-reflective, so apparently very visible in a lot of lighting conditions, sort of like e-ink but with a great refresh rate. I beleive it's the same panel as this: https://www.adafruit.com/product/4694