^ That doesn't conflict with anything at all. Look very closely at the sprites and count the colors you see:
Mario: Burgundy (cap and shirt), orange (skin and buttons), dark blue (pants and outline), white (eyes)
Luigi: Lime green (cap and shirt), apricot (skin and buttons), dark blue (pants and outline), white (eyes)
Peach: Pink (dress, lips and earrings), apricot (skin and crown), brown (hair and outline), white (eyes)
Each character sprite set features only four colors in the original NES game. (Oddly enough, Toad's sprites only use three colors.)