8-bit TN panels: what exactly does this imply?

Does an 8-bit TN panel imply 8-bit color? As in equivalent to CGA? I'd imagine that would look terrible.
How can this be considered a step forward?

http://www.tftcentral.co.uk/articles/content/6bit_8bit.htm
8 bit is a GOOD thing on monitors. Thus isn't like you are comparing a Sega genesis to a snes.

The highest quality panels on the market are 10-bit, but those are incredibly expensive typically.
8-bit looks great and is more than fine for 99.9% of people.

Also, panel bitrate is not linked to the color bit in Windows that you can set.

I think I see what they're saying now, 8-bits per color (8 bits for red, 8 bits for green, 8 bits for blue) or 24-bit color? If you use a a modern, digital transmission scheme between the GPU and panel (HDMI or display port or DVI) what are the ADC's used for? Decoding the binary input data (like a UART)? Is this 6-bit vs. 8-bit issue w/LCD panels at all like the old 3DFX 16-bit vs. 24-bit color debate that 3DFX lost?