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On real CRTs you could do quite a bit to increase the contrast by fiddling with the knob. I think someone just has their emulator set up wrong for the video.

if you compare the c64 palette to other ~16 color computers of the era, the c64 has a definite brownish/purplish tint to it, i don't think the video misrepresents it.

I read somewhere that the colour palette is pretty much a representation of the colours the designers of the chip liked.

I remember Summer Games looking quite good. It was a big jump in graphics.