an alternative system to acheave a blend is true overlaped ditered sprites, or some sort of mask
here is a 3D example from pico8 (they do some neat stuff) but the thing i would like you take notice of is that they use a 16 color pallet and use 2 textures and use ditering to achive the lighting
http://www.lexaloffle.com/bbs/?tid=2688&autoplay=1#pp
its not perfect but in theory it can work
here is a 3D example from pico8 (they do some neat stuff) but the thing i would like you take notice of is that they use a 16 color pallet and use 2 textures and use ditering to achive the lighting
http://www.lexaloffle.com/bbs/?tid=2688&autoplay=1#pp
its not perfect but in theory it can work