This article contains a visual explanation of NTSC color artifacting, and how it can be used to get 1024 colors out of IBM's 1981 original PC CGA:
https://int10h.org/blog/2015/04/cga-in-1024-colors-new-mode-...
https://int10h.org/blog/2015/04/cga-in-1024-colors-new-mode-...
But the Ataris had S-video outputs (in 1978!), which of course is not composite. The color resolution is too high to produce artifacts when using separated video, so those games were essentially black & white on a good monitor like the Commodore 1702 hooked up with separated Y & C signals.
The Ataris were great, forward-thinking computers.