And to this day, 24 years later, adding custom colours is bugged. It does not "add" colours, it overwrites the first colour in the list.
EDIT: to clarify, the above is only true if you exit the dialog and then return to it. It has no concept of previously defined custom colors, it just overwrites whatever you had before, instead of appending to the list.
All that having been said, yes, it does appear to be better and more functional than the new proposal.