It's not that someone has intentionally reduced the palette to 256 colors. The image in its original state has less than 256 unique colors. The sample you have above obviously contains more than 256 colors so it would not be "indexed". Think of the same object as above but with solid concentric circles (rather than the blend you have). When a PDF from InDesign would be exported the image would be Indexed RGB. Another example. Years ago I had an insurance company who created a CMYK PhotoShop image of the front of their brochure. On this panel they had a large flat area of some sort of brown taking up the bottom 2/3rds of the page. The top 1/3 of the page had a orange area. Where the brown and orange met they had a "swoosh" that was about 9pts in size going across the page. This particular CMYK image contained three unique colors, orange, green and brown. When the art was placed into the layout the resulting PDF had this panel as an indexed CMYK image.
You could create an image in PhotoShop and "index" it without seeing any noticeable shift in the image.
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Matt Beals
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