Having the ability to display color on the console is really useful to provide easy to read output in many scenarios (e.g. test with OK/ERROR).
But I agree it should be disabled by default and not overly complicate things. I would suggest that you look at how this is handled in standard terminals. This works in the form of escape sequence which give a code that the terminal can interpret as being a color. This would make it available to applications in a standard form. As per coloring the prompt, bash uses special environment variables that allow you to redefine the prompt and this way you can insert those escape sequences to color it. Best, Matias