If the Default material’s color could be set to use the object’s Display Color, then when the display mode’s Color & material usage is switched between Object’s color and Rendering material, only faces with overridden materials would display in different colors.
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Hi Steve - see if SynchronizeRenderColors does anything you like.
-Pascal
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In the last 2 images below, I placed "?"s over cases where the material display* was not updated to the object color. In V7, SynchronizeRenderColors changed the green layer’s material to blue. I like that the materials were retained for faces that were individually set (right column).
*In both V6 and V7, in Material in the Properties panel, the material for the second column objects still show as being the red material. Shouldn’t they be changed to their displayed material?
Wireframe:
Shaded with Color & material usage set to Rendering material:
After SynchronizeRenderColors, selecting all breps:
V6: 
V7: 
Before_SynchronizeRenderColors.3dm (347.8 KB)
I would like to extend this wish with the following:
Both object display color and material color should all have "by layer, “by parent”, plus “by material color” and “by display color” respectively.
It’s tedious to have to synchronize everything, plus it creates a bunch of new materials… (and it overwrites the default material I see, because all my objects in my file are now rendered green, even the ones with the “by layer” display color!)
EDIT: Yeah, no… synchronize is borked in my file. If I use it, everything turns green. 
EDIT 2: Also, Undo does undo the borked assignments, but doesn’t remove the newly created spammy materials…
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