Well, you can request it here:
http://apps.ati.com/driverfeedback/index.asp
Good luck getting it implemented though. I've seen a few posts by some members of the Catalyst team that said, in no uncertain terms, that you can forget about ever seeing that feature in ATI drivers. Why? Well, that's a good question, now isn't it? Something about the drivers not passing the MS certification if they used it (which seems like BS if nVidia manages to do it), or because there are too many varying implementations of that feature to include them all or some such thing like that.
Though I don't see why they couldn't just make it a "compatibility" option for us to use, especially on Final Fantasy 7....seems reasonable to me. But apparently it doesn't to ATI. You are just supposed to either throw the game away or build a "special" system with ancient hardware to play games that use 8-Bit Paletted Textures if you have a Radeon in your main rig, either that or just play it in software mode. Isn't that nice?
There were many threads debating this a few months back.
For whatever the reason, it's a sore subject between ATI and their user base.
I have a game that I suspect uses 8-Bit Paletted Textures ('Incoming' retail version, can anyone confirm that?), and the last time it worked right was with the old Catalyst 2.5 (DX8) drivers. But it stinks to install old drivers just to play one game.