No, I want to understand this to help me with recipe scaling and formulation if there’s something I’m not getting.
I get the dilution thing, but its not just that. Yes, you increase the amount of color malt, but everything else also increases proportionally.
Yeah okay, I'll try and make it more clear. In teaching, I've often found that such situations arise when one party makes an invisible implicit assumption without even being aware of it, and the best way to resolve it is to drill down into the little steps in between. So I'll now try to make my reasoning as explicit as I can - not as a rhetorical trick try to make you look like a five year old, but just to find the root of confusion.
You said you agreed about the dilution thing, and I think adjusting OG is, in a sense, a matter of dilution.
Let's say I make a 1.080 beer using X amount of grain and Y of water. Diluting at packaging, I add Y litres of water, which gives me a lighter coloured beer with, essentially, an OG of 1.040.
Talking only about colour, I might as well add the same amount Y of water to the mash tun (this will also bump my efficiency a bit, so I might come out at something like 1.045 instead, but that's not the point). Then I will have used the same percentages of grains as the original beer, but I'll have a much lighter colour, simply because the ratio grain: liquor has shifted.
As a somewhat extreme thought experiment, let's take a recipe that calls for 100% roasted malt (yummy!).
At a gravity of 1.050, this beer is going to be pitch black. If I brew it to 1.001 by just showing a bag of roasted grains to my mashtun and whispering the word "stout" next to the brew kettle, I'll have just slightly tinted water (hard seltzer?!).