> 1. Easy to say/spell....having to explain your site is Colr.com or TheColorApp.com instead of just "Color" will impede consumers.

> 2. It makes you seem like a real company with the resource to own a short, properly spelled name...

This is not a very hard problem to solve.

    kragen@inexorable:~/devel$ cat shortnames.py
    #!/usr/bin/python
    # Pick unused domain names. Kragen Javier Sitaker, 2011.
    import socket, random, itertools

    def lookup(domain):
        try:
            return socket.getaddrinfo('www.'+domain, 80)
        except socket.gaierror:
            return None

    # We try an unlikely-to-exist domain in case our ISP engages in a
    # man-in-the-middle attack on DNS traffic.
    failing_dns_response = lookup('jaoiwgjaioawjio'+'aioj.org')

    words = [line.strip() for line in file('/usr/share/dict/words')]

    short_words = [word for word in words if 0 < len(word) <= 6]
    print "Considering %d short words." % len(short_words)

    for ii in range(20):
        while True:
            sld = random.choice(short_words) + random.choice(short_words)

            if len(sld) <= 2:
                continue

            domain = sld + '.' + random.choice(['com', 'org', 'net'])
            if lookup(domain) != failing_dns_response:
                continue

            print domain
            break
    kragen@inexorable:~/devel$ time ./shortnames.py
    Considering 22221 short words.
    LippiSeurat.org
    crownseagle.net
    JoleneMable.org
    anorakbarf.org
    baitdepend.org
    opticbib.org
    elopevictim.org
    maniacAbner.org
    glandhanker.org
    nthprissy.com
    dumpsSandra.org
    measlyhafts.com
    cassiaLaud.net
    avowstarots.com
    Elvianoun.org
    duchyfeisty.net
    dualgales.net
    hikingpinup.com
    dirgesBarnes.net
    tillchars.net

    real	0m15.749s
    user	0m0.140s
    sys	0m0.028s

How about dualgales.net, opticbib.org, napstiff.org, ticketgorge.org, damnharem.net, bargehutch.org, ravagepunk.net, jigglemutant.net, EliRx.org, jobunsafe.org, vendspanda.com, lathedkid.com, poppedcopula.net, triadsvia.com, civicsdiary.com, greyvalet.com, queenfigs.org, pagansultan.net, tacofoci.com, odderzoos.net, fleatablet.org, and so on? The whole blob of them all together looks like spam, because spammers register domains using a very similar approach, but any one of them is a perfectly respectable, easy-to-say and easy-to-spell, relatively short domain. This program can generate about 1.5 billion different domain names, modulo possible weaknesses in random.choice.