Very cute... Sigh, the old gfx in games back then was so totally awesome!
As for practical use of palete rotating technique it is near 0, except for some really rare cases.
- there are extremely few artists that know how to use this technique, even during 8bit era there were almost no artists that did it (take a note that the gfx on this example is 20 years or older).
- you can do it only with no more than 256 colours, also some of the colours will be used for animation, this leaves very few colours, the quality of gfx have to be inferior by default.
- animated gif provide similar effect (but with more colours available and animation converters widely available and the process of making gif animation from static images is trivial), for the price of bigger file.