I can't say I've notice any color limitation with my N800. The screen size is great for a handheld/phone, but small compared to a laptop. I find I hold the NIT about 12" when working on it and about 18" - 24" when watching a video & it's as good or better than my desktop for clarity.

For videos, you'll find (and read) that bigger limitation on screen resolution isn't in the screen itself, but the CPU / video data bus limitations for anything over 400x200.

I recommend replacing the screen protector often help keep everything crystal clear.