Today's color pallet inspiration is brought to you by Super Mario Land 2

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Interesting, didn’t know it’s that different from modern Mario games. 

Was the muted color palette back then an artistic choice or a hardware limitation?

For clarity, I believe this color pallet was fan made, not an actual representation of the game that was released. 
Having said that, you were able to mod the color pallet of Game Boy games with extensions such as the Super Game Boy

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For clarity, I believe this color pallet was fan made, not an actual representation of the game that was released. 
Having said that, you were able to mod the color pallet of Game Boy games with extensions such as the Super Game Boy
https://www.mariowiki.com/Super_Game_Boy

Thanks for clarifying! Much appreciated. 🫶