With the current limitation, you could use a low-poly style with one or several 8x8 textures and use per-face-colouring. It's essentially removing the limitation if you use a low-poly style.

For example, you could use something like this and due to the way you UV wrap, the 8x8 texture rule would not be broken. You could have one 8x8 texture per colour, or 64 colours per 8x8 texture, or somewhere in between.

I DONT KNOW

This is correct, however your game will be rated on it’s use of the limitation during the voting period, so points will most likely be lost there.

What about using multiple 8x8 textures allowing for shading e.g. stripes (fur), dots, dithering?

Could allow for an interesting art style and higher resolution looking textures, but maybe make for complex art pipeline with multi-material models.

Or using multiple 8x8 textures in a single character to provide a more textured effect e.g. sides of cubes, parts of characters e.g. eyes, nose, mouth, hands ect.

The result could be a low res style of game meshes.