Moderator
Group: Moderators
Posts: 2366
Member No.: 22158
Joined: 26-September 07
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Yes, that's a carefully calculated image that's designed to have the chroma reduced to almost none when converted
In "general" though, most video doesn't have that problem
(1 dot of colour surrounded by 3 dots of monochrome)
You could equally do a yuv that can't be encoded in rgb, but that's not a reason to ban rgb 
420's not perfect, but it's a decent compromise for filesize/quality
It was designed for film/video though, and not game captures, so your results may vary
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