It is very nifty for any game creators who are going to make a 1-bit game, since it can convert any number of icons at a time, and even gfx's.
Also for anyone who wants to cheat for a pixel contest can slip a few good icons into there and let it do the work(Shh, we wont tell maggeh, or monkeydidit, it'll be our secret).
I was inspired to start working on this when someone posted a 1-bit image, and people started talking about a 1-bit challenge&Collaboration.
Here is a sample i've got from it so far.

Here is what dan has gotten(It is a png that is converted).

The demo is located at:
http://developer.byond.com/hub/Bakasensei/1BitConverter
Hope you guys like it, and this helps you out! Give me some C&C on the game, and if you find any bugs please tell me at [email protected] or my byond key: Bakasensei.
Yes I posted this on the pixel art forums too.