Disagree, Apollo uses colors and spacing both, looks good and it’s helpful!:
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Discussion
We agree to disagree then... Colors for different authors make a lot more sense than colors for levels of replies.
Good idea also
The original screenshot was confusing by coloring the author name with the same color as the thread level indicator, Apollo example is more clear, one or the other not both, as you say
Also the ability of collapsing/folding is very helpful to filter out comments which are attracting bad comments, or which are over answered