't_Co' is always set to 256 if 'nocompatible' is set

Since I updated to Vim 7.4 I'm seeing this strange behaviour:

$ echo $TERM
xterm-16color
$ vim
:set t_Co?
t_Co=256

I first suspected that something is wrong with my vimrc, but starting without
a vimrc behaves the same:

$ vim -Nu NONE
:set t_Co?
t_Co=256

What's really wierd is, that if I start Vim without 'nocompatible' then 't_Co'
is set to the correct value:

$ vim -u NONE
:set t_Co?
t_Co=16

This was definitely *not* happening with older versions of Vim. Now, is this
a bug or somehow intended? Can anybody reproduce this?

Thanks,
Dustin

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