really great atmosphere and art. i just have to nitpick that this is 1-bit color. not 2-bit.
a cool way to do 2-bit would be to have a bit for red and another for green. this would give you red, green, yellow, and black. you could also do red and blue which would give you red, blue, purple, and black, etc.
if you want white, you need many more bits to approximate it well.