So as of today the 21.03.2021 color banding has been defeated. Now at the beginning I was under the impression that the crappy color banding was caused by pixelworks and guess what?
Infact the reason this happened was actually because of ASUS not wanting to implement any type of gamma correction at all, while other manufacturers like nubia and oneplus have infact added gamma correction in their kernels. So today I simply stole some code from Oneplus 8 kernel like the naughty naughty boy I am and magic has happened. So what are the results of this?
Now as you can see the difference is absolutely insane. Blacks have returned, no pixelation and the screen looks absolutely georgous! Honestly this screen after calibration seems absolutely amazing, ASUS was not lying when they said that these panels are actually high quality. Granted the quality of the screen cannot be seen in those pictures very well as smartphone cameras have great difficulty catching stuff in the dark with huge amount of details. I took a closer shot as well to show that even the black crush is quite in check as well:
How exacly an absolutely new guy like me who has extremely little experience with kernel development could fix an issue i looked at in weeks while the experienced asus team didn't get the solution until this date is beyond me right now. I hope that the devs will fix it very soon now that they know they can simply nab code from nubia or oneplus and some modifications, today my SSD died with my ubuntu and kernel sourcecode on it, so only thing I have left is a flashable zip file that would most likely crash on 75% of rog3 devices due to extreme amount of undervolt, i will still share to those who want to try, but successrate won't be high :'D
At this point I want to thank Freak07 for introducing and helping me to get into kernel development much faster than I would have taken by myself.