Surface-Stable Fractal Dithering
Very cool, thanks for sharing!
[1]: https://blog.myli.page/rolling-dice-on-a-60-handheld-08be278...
Add more lighting and shadows to the game before that dithering pass and then see how far you can push this, and write about it. Cheers! :)
But using 16-bit Z-buffer for 1-bit display seems to be an overkill. Sorting polygons works mostly fine if done right, especially if BSP tree is already used.