Regarding the 640x200x16 mode:
I'm currently fiddling around with some TSR code that pretends to set VGA's 320x200x256 mode 13h while actually setting the Tandy mode.
Since that mode has a compatible memory layout, every 256 color pixel will simply show up as a pair of 16 color pixels.
Viewed from a distance, the result will look like a 256 color picture (136 unique colors) with more or less this palette:
The attachment palette.png is no longer available
Correction: 136 is the number of unique color combinations. With the CGA colors as base palette, the number of unique average colors is actually 122, because some combinations have the same average color.
With such a TSR driver, one could run VGA/MCGA programs directly, provided that they don't use any advanced features and don't do too much error checking.
I will attach my code and two self-displaying bitmap files (rename to .com), one with a custom palette (will show up garbled), one converted to the palette from above.
Please note that I could only test it in DosBox, so don't use it on real hardware unless you know what you are doing.