Transparency is the reason most people are stuck with PNG in the first place, and it is the thing crude compression damages first. Semi-transparent edge pixels — the soft fade around a logo or a cut-out subject — need enough palette entries to stay smooth, or they turn into a visible stair-step fringe.
This preset stays at 256 colours for that reason. It saves less than the aggressive settings and keeps edges clean, which is the right trade for artwork that will sit on top of other things.