I think for a new use for dye is to make the dye, put it in a bucket, then pour it onto wooden planks so the color isn't the same over and over again and you could make interesting rooms and houses with different wooden plank colors.
If you want to make rooms with tons of colours but it look like wood , you can change the textures of the wool and make them look more like wooden planks , that will make the work , because dyes adding color to all things dont make all of sense and if that happens wool wont be used for anything...
The problem with changing textures of blocks (such as wool) to replace something not in the game (colored wood) is that the original block (wool) can't be used at the same time as the "new" block (colored wood) and that on SMP all others wood see the old block (wool) instead of the new block (colored wood) while you see all their usage of the old block (wool) as the "new" block (colored wood) which may make other structures look ugly to you and your structure ugly to others.
Besides, colored wood would be easy to implement. It would be damage values of the wood rather than new block IDs.
Besides, colored wood would be easy to implement. It would be damage values of the wood rather than new block IDs.
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