I was thinking the other day, about how palette space comes up often on the forums. I thought of an idea that, that maybe has already been thought of before.. but it might be something to consider.
What if the server used a basic template to create, of varying classes/races? Essentially these would all be blank and have a generic, base name of HUMAN FIGHTER, HUMAN ROGUE, HUMAN CLERIC, etc and then they could be scaled, named, apply an appearance to and given unique gear/properties with a script or some other function. This could be done with basically everything - from animals to elven bandits living in a mountain valley.
I think if it's do-able and wouldn't cause much lag it could really free up some space.