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If you've got a perfectly good way of differentiating narrative and dialog now--quotation marks--why do you need anything else--color--to supplement or replace it?
Color certainly wouldn't help the reader tell one speaker from another, unless you want to assign each speaker a different color, but that would be beyond absurd. Color would highlight what is dialog, so you could find it, but why would you want to be able to find dialog? I've seen New Testament Bibles render all the words of Christ in red, but that's so one can find those words easily for a specific purpose. What's the purpose in your average book?
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