I'm quite curious, this would be a game changer for me.

It already does, as far as I'm aware. As well as a few other palettes.

There is an unsaturated palette. Unsat v6

It's the one I use.

Note that it is only available as an option in the publicly available AVS v1.20 beta series of firmwares. But with enough time, I'm sure there will be a v1.20 stable release including it.

We just need to find and report as many bugs as we can in the betas  

Excuse my feeble mind, but what is the difference between beta firmware and stable firmware.

beta firmware has experimental features like the palette selection options and also bug fixes which have not made it into production firmware yet

They might also introduce new bugs.

But you can revert back to any other firmware, including the 1.1.0 release stable firmware, at any time.