@Rag, honestly I feel that for the most part you submit many interesting and insightful things in these forums but sometimes it feels like you have to get the last word in just for the sake of it, or to be in your own eyes proven 'right' in any given discussion, continuing to argue somewhat pointlessly over minutiae when a lot of the time we are dealing with opinions.
The issue with colour coded items I find is really quite simple; they seem to be associated mostly with action RPGs and MMOs where probably the biggest, and often sole, motivating factor is in gaining more, better and rarer loot. I won't deny for an instant this isn't a factor for many playing a D&D CRPG but it is by no means the only one.
It would have been very simple to mimic BG2 and have lovely little bits of history behind the item in a pop up window but instead we have this nonsense colour coded crap to remind you yet again this is a video game and the your green item is rarer than your blue one or whatever it is; there has been no attempt to ground you in the world and the history behind the items you find in a nuanced or immersive way.