Of course. The color of the pixel is stored in 24 bits, 8-bit red, 8-bit green and 8-bit blue. The screen doesn't need any further bits at all. A 32-bit display is really just a 24-bit color display with extra room in the screen to store alpha values *if* you wanted to use them for something, but like I said hardly any one uses them for anything and it's not a part of alphablending the graphics that you draw. Your sprite has its own alpha channel which is used for scaling the color contributions.
Should we support 16-24 bit color modes?
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