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Certainly the colors are not particularly vibrant, I think the camera is designed for working well in low light (night), which it does surprisingly well at, but colors are quite muted I think as a result.
I was a bit upset when I thought it was not a color screen. Ciege and Droid13 were right. it was a low light situation and the screen is not that vibrant. I saw a red car behind me while i was backing up :P