Choosing your own colors sound like it would cause much conflict.

Whenever a newer pirate or even some confused pirate would ask for help on here, you might describe the enemy as the one with the red name. Also, having to choose them could make your gameplay slower for so many others. I know mine was very slow as I played, and I wouldn't want it to be any slower.

Even though you can tell the other player about these things and the laggier players to not set their colors, it would still be VERY confusing.

I believe Disney is leaning towards following it other large online game(s). The other game I play that is Disney owned is Toontown, and they have very similar colors for the characters.

Your freechat friends - Blue
NPCs - Green

There are other colors, but these these are the similarities in the two games.

no this is incorrect
Enemies: red
Friends: blue
Guild: blue
Crew:purple
anyone else: blue
NPC: green

yes but thaas my example of how it should be done :)