...and the author's point in using both? That he lives in Iceland, and is trying to straddle the fence?

I think he is emphasizing how dull the modern videogame palette really is; there is no third color.

Probably going for another meaning of the word, like dull or boring. Not that it's strictly correct, but in headlines, sometimes it's the thought that counts.

He probably doesn't have a point in doing so. Do you?

My point was that it was odd to repeat a word in two different spellings in the same sentence, unless you have a point in doing so. Different strokes, I suppose: some favor "favor"; others favour "favour".