I agree that the current way the "color race" is being done does not make any sense. First of all, as it has already been stated, only the alliances above the add line are being represented. Also, just because an alliance is officially some color does not mean 100% of the alliance's members are all that color.
Why don't the updaters just use the team stats page (http://www.cybernations.net/stats_team_stats.asp)? I know its not real time, but if its used consistently then who cares?