"I think varying intensity within any given vector would also support
first person games with "fading perspective with distance" nicely."
FWIW, this is called "Depth Cueing"
Evans and Sutherland Picture Systems were the only vector display
I ever used that had it, I assume the later Vector Generals and
Megatech's could do it as well.
As long as you're at it, 8 bits of D/A on R,G,B will give you all
the brightness you could use..