This thread could be veering into one regarding the relationship between how food looks and how it tastes. As far as I understand from psychological studies on food and eating, how something looks is vital to our perception of taste, and when something doesn't look like the way we expect it to, it tastes different. That is why supermarket and restaurant food has such an emphasis on how a product looks (as well as the profit motive of course). The better it looks, the better it tastes, and the more likely we will go back for more.
Now, this may have little or no bearing on the Punjabi Masala. If it is red, or orange, or brown I suspect it will make little or no difference to the taste, especially if you are used to not colouring your curries. However, if you are into faithfully replicating BIR then colouring is part of the deal.
Notwithstanding this, which is my own personal viewpoint, I think you have both made valid points.