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YouTube has so unreadable favicon. New one is on the right:
If you want to be suprised: white text on red is not really white, it is purple & yellow! There is no spoon.
qu1j0t3: The idea for making a subpixel image reduction filter for photoshop sounds very cool. I've used your ico format plugin to make many favicons, and a filter for reduction would definitely make good and clear favicons much easier to produce ^_^