On one level the code allows disabling color with a flag. On another level, the code provides support for a nascent attempt at creating a new standard.
Software development is a social activity, and if someone wants to introduce new functionality, they have to convince others that it's a desirable change. Making up a "standard" is the easy part; I'd expect that convincing others to adopt it is more challenging.
That's all the code does.
> … but about adopting a "standard" that someone made up by themselves.
People's imagination is where standards come from.
People make them up and get agreement from other people to implement them.