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Exactly Guy!
We can display hundreds of colors on nodes and links... but, so what! The old 7+/- 2 rule works well... and that is for the combo of node/link/hi-lite colors. We can do more mathematically than we can understand visually.
Another factor is the audience... are they network thinkers/perceivers? We SOCNET members can probably see more in a network diagram than the common person... keep it simple. We show various simple slices of the whole plus the one complex overall picture.
...but then there is a clear perception issue: just how many colors can a user usefully distinguish. I fear this might be around 7 - 10
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