AFAIK, the beagleboard supports 24 bit colour, and uses omap3, so the n900 probably does too. OpenGL ES (3D acceleration) only works at 16bit colour depth though, and this is probably the reason why this is the colour depth used. Plus the screen will only be 18bit depth at the most anyway like all TN TFT panels. I somehow doubt they put an IPS or PVA panel in a phone...
TN displays suffer from limited viewing angles, especially in the vertical direction. Also, TN panels represent colors using only 6 bits per color, instead of 8, and thus are not able to display the 16.7 million color shades (24-bit truecolor) that are available from graphics cards. Instead, these panels display interpolated 24-bit color using a dithering method that combines adjacent pixels to simulate the desired shade. They can also use Frame Rate Control (FRC), which cycles pixels on and off to simulate a given shade. These color simulation methods are noticeable to many people and bothersome to some.[2] FRC tends to be most noticeable in darker tones, while dithering appears to make the individual pixels of the LCD visible. Overall, color reproduction and linearity on TN panels is poor. Shortcomings in display color gamut (often referred to as a percentage of the NTSC 1953 color gamut) are also due to backlighting technology. It is not uncommon for displays with CCFL (Cold Cathode Fluorescent Lamps)-based lighting to range from 10% to 26% of the NTSC color gamut, whereas other kind of displays, utilizing RGB LED backlights, may extend past 100% of the NTSC color gamut—a difference quite perceivable by the human eye.