I've seen that, for example, Woolen Doublet (Red) gives extra Dexterity compared to undyed, while other (Red) gears give Mind or Vitality bonuses (Ranger's Tunic / Raptorskin Jerkin respectively) compared to undyed version, and that can be a little confusing for some people - specially me - that like to learn which color does what to which gear.

If that "colored gear is better than undyed" system is going to stay, my suggestion is that you make so that each color gives a specific bonus, so that people know exactly what they are aiming for.

Example: make that every (Red) gear gives Strength / Magic Potency bonus, while every (Purple) gear gives Dexterity / Magic Accuracy bonus... instead of all the mess it is right now.
And like that, people will probably distinguish their looks better once someone preffers having a character built on STR or built on DEX. Like we'd be able to tell if the player rathers be a Damage Dealer (aka wearing all red gear) or an evasion-crit / debuff freak (wearing all purple gear).