Don, you misunderstood, I think. I wasn't talking about distance making a color black. I was talking about scaling the pigment down, which is really what "scale color" should mean, grammatically speaking. Shrink down a pigment to scale size, and it gets black to the naked eye—or even under an optical microscope, if you shrink it enough. That's why I don't like the term. It should be "atmospheric color" or "distance color" or "scale distance color."
But I also object to the notion that we should consider scale models to look as the real thing at a distance (except in a diorama, where it is needed). I want my models to look as close to the real thing, up close and personal, as possible. Otherwise, as you say, why add detail? The same folks who criticize a model for not having "scale colors" also keep panel lines, sometimes even going to great lengths to get them and the panels just right—all of which vanishes at scale distance.
Why do Jon Vojtech's models win prizes, when all that incredible detail wouldn't be visible at a scale distance? (Rhetorical question!)
I guess I've just heard it used as a critical nit-pick too often. Same with "that's not the right color for olive drab" or any other color. I used to work in the paint industry, and one of my tasks was approving batches of paint for color match. I know how much variation can occur between batches of a paint color before it even leaves the plant. And after that, it's up for grabs.
Okay, I'm ranting. Time to go get some more styrene and a cup of coffee…
BTW: Coffee makes a great color wash…Don't ask how I found out…