This is a spin-off of Holiday Lighting, which uses much of the same code for light behavior but doesn't include the holiday scheduling piece. Instead, a parent device is created with child switches for each color palette. Each switch will trigger its own set of colors applied to the lights. By having an activator device, you can use Rule Machine or other automations to have complete control of when you want your color sets to start and stop. (When one switch turns on, the others turn off automatically, since they're acting on the same set of RGB lights.)
Currently no; it uses the built-in RunEveryXMinutes() functions. That's been a request for Holiday Lighting, too, so it's on my list. Extracting the common code to a library like this, adding it to one adds it to both.
New feature added to both Holiday Lighting and Palette Scenes: Option to stagger updates to multiple lights across the update period. So for example, if the update period is 1 minute and you have four lights, the switch will give you either:
All four lights change simultaneously every 60 seconds
One light changes every 15 seconds, so that after 60 seconds the lights have all changed
This probably works best with Random, but nothing stops it from being used with Sequential.