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Colour shouldn't cause lag or crashes unless there's something broken within your code - from a conceptual point of view, it really is a purely aesthetic question.
Personally I rarely use colour, although I find it's very nice for displaying maps. I also like to highlight "tell" messages, as it makes them stand out (unless you've got lots of other colour). The other place I like it is within prompts, with the colour representing a percentage of remaining health/mana/etc. But in general I prefer a very small amount of colour, so that what little there is really jumps out at you and draws attention to itself.
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