Do you have any references for these statements (I'm not being combative, just curious)?
Yes, I'm always capable of backing up anything that I state on the subject of fish nutrition with real data, studies posted in peer reviewed journals, etc. I'm not sure how much time I'll have to dig up some of the info tonight, but I'm sure if you're willing to spend the time searching around you'll find all the info required, and then some.
While I see your point, isn't this a concern with any kind of fish diet?
No, it's not. The only commercial feeds that I'm aware of that will turn a fish that is naturally yellow, to an unnatural orange, or a fish that is naturally pink, to blood red, use these same synthetic color enhancing agents.
The same company that produces Carophyll Pink also makes a yellow enhancer for egg yolks. Take a look at the orange side of the scale in DSM's egg yolk fan - has anyone here ever ate egg yolks that color from a free range fed chicken? I think not.

And just to show how common this type of artificial enhancement is in Asia .....
http://forum.bidka.org/showthread.php?t=3018&page=3
I was in Singapore two weeks ago to attend the Discus Judging course of Discus Club (Singapore) and for the Aquarama Fair. There were some heavily colour enhanced fish competing in the Show. All of them made it to the first three in their classes. Some of the fish were hormone fed and some were colour enhancer fed. After the competition, I had the opportunity to discuss this subject with Dr. Sun, Andrew Soh, Colin Hang, Brandon Wu and Ivan Seah. All of them agreed that excessive amount of colour enhancers and hormone should not be fed to the fish BUT, they all believe that both colour enhancers and hormones CAN be used to reveal the real colour potential of the fish. Of course, nobody can really tell to which extend. We all agreed that the fish should not be coloured to the point where it looks artificial. However, some fish who got rewards on the Aqurama Show were so much enhanced that they were looking like they were made of plastic, including the Grand Champion. I talked to the owner of the fish Raymond and he told that he was using only natural ingredients in fish food to show the colour but even the fins were yellow which is a good indicator of heavily used articial colour enhancers.
This brings us to the point whether natural colour enhancers maybe used and artificial ones should not be used. I believe this should be the case. I don't believe that feeding paprika or spiriluna gives any harm to discus. However, it is not the case with artificial ones. All the articial enhancers which are beinig used on fish today were fist developed to be used on cage birds, especially canaries. Experiments made on canaries which were fed canthaxanthin in excessive amount showed that it causes liver and retina damage. On the bird products there is a warning on the label about this. However, most of the fish owners/breeders is unaware of this fact.