I have done multiple new works musicals and the theater I worked for always used colors for new pages. However, unlike TV, the colors were not associated with the day, but with the revision number. However, if there was a total re-write (like the entire 2nd act) that was issued in White.
I will say it helps make it clear that everyone is reading off the correct version (blue pg. 12 vs. yellow pg. 12) - and your script does end up looking like a rainbow. However, as others have pointed out, you do run the risk of running out of a particular color. I also have been in a situation with so many re-writes (over 7) that we did have to double back through the colors, which is yet another reason to not use this system. I've never come across the double-sided vs. single-sided issue. Everyone got single sided and had to deal with it. (We also ran the songs in color, if there were revisions.)
The important thing is to have a system in place in advance and just make sure you have enough reams of the appropriate colors. I will say, after years of color coding the revisions, last year that particular company decided to nix the color-code system and just reprint with dates. It made it a bit harder on me, as my author was not that savvy so I had to insert text boxes with dates on everything, re-paginate and I myself even lost track of which version was which (especially with 2 or more revisions in the same day), when all I was looking at was a pile of white paper.
It has its pros and its cons, but ultimately it has to be what will work for your team - and your sanity.