Ok, I'm not sure if I'm even asking the question correctly, and what I'm trying to do might be a bit on the weird side. So, I'll try to explain what I want to do, without sounding like a madman.
I have an image, shown below:
Now, I know how to apply the texture in the usual way. Getting it to look like this is easy:
What I want to do though, is this:
I can achieve that effect in the compositor simply enough, but I want to avoid using the compositor if at all possible. I was wondering if there was a way to do this with BI?
The reason I'm trying to do something so silly, is that I am primarily a pixel-artist, and I've been experimenting with trying to generate decent-looking pixel art via Blender. Once I'm able to do the above, I can then produce something like this:
Thanks in advance for any advice or nudges in the right direction!