FYI the technique I use is to use GIMP:

1. Load the PNG
2. Choose Image -> Mode ->Indexed, and choose a 'maximum number of colors' value that is the lowest 2's exponent. For pure b+w with some gray for antialiasing, I suggest a value of 8. For just a few colors with no gradients, 16 or 24. Otherwise I don't bother using indexed colors, as the spacing savings becomes negligible.
3. Save the PNG, and it should be really small.

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