[Phylum]

Yes, no.

There are 0xFFFFFF different armour colours. Mixing most of them will be painfully tedious and demand high quantities of dye.

Wool blocks won't have this feature because blocks need to store light data.

e: Dinnerbone mentioned somewhere that the lighting engine is being reworked. Because he's so awesome he may consider coloured blocks in that process. I'd personally be more interested in the possibility of coloured lights.

Also, he said that framed armour will retain its colour.