Thank you for sharing this. Here are my thoughts about the content.
Wow. Fascinating profile. It sounds like they had a really innovative process. But from what I know, it did not live up to the ambition described here. I played the DOS version of Captain Comic when I was a kid. It's a pretty unique game, although I would make it a double feature with Metroid. When I first learned there was a Nintendo version (via ROMs, many years later), I was excited to check it out. It's not a great port. For all their talk about graphics expansion, it's not successful in Captain Comic. Just compare the player sprites. 6 colors in the computer version, same old 2 or 3 in the Nintendo version. And it's less color all around.
I am interested to look at more Color Dreams games. Does anyone know what happened with the Outpost project?