I tried to change the driver to use the standard 16-bit color palette load method but it just blue screens.
Also tried pairing the xga2.sys with the framebuf.dll which is use in a lot of virtual machines as the video driver. It sees all the 256 color modes and one 65536 color mode. If I try to use the one listed 65536 color mode the screen redraws to long and distorted, the colors are very dark so no luck there.
Looking in the leaked 2000 SP1 retail build source code the only reference left in the source to xga is this one comment:
*... unless the display driver is xga.drv,
* because XGA cards aren't really VGA compatible
Yes looks to be true so far.