Yes, ultimately color=distortion. More color=more distortion. But it is - for the most part - controlled distortion. One of the reasons Neve mic preamps have remained popular are due to a very specific type of distortion based on the design of the input and the output transformers. And when those transformers have more signal driven into them, they begin to distort more - which translates into an often pleasing type of coloration of the sound. That sound is often referred to as "iron in the path".
Transformers - depending on which designer you talk to - will tend to slow down the signal. So while, on one hand you may introduce a nice type of colored distortion into the signal, the negative side effect of that is that the frequencies - especialy the faster higher ones, don't pass as quickly through the path. That results in a lessening of the overall imagery, definition and 3-dimensional depth.
Mics and preamps that are specifically designed to be very fast - and allowing the signal to pass through the component as unhindered as possible - are often [ but not always ] transformerless. What that type of design does is colors the signal much less, and since it's allowing all the frequencies to pass through faster - the end result is a much better presentation of imagery in the overall recording - especially stereo recordings.
So, if you want more detail and imagery on a particular track - like acoustic guitar, you might chose a neutral or transparent mic - and mic pre - so that all the frequencies are presented at a similar speed at which travel naturally fom the source. That type of sound is also often desired on drum overheads - so that what is recorded gives a nice spacial detail of the kit. But then lets say you have an amped electric guitar part that you really want to sound big and have balls and energy. Well, for that you'd be more interested in introducing some color/distortion - and less in preserving the "imagery" - you just want in-your-face balls to the wall sound. That's often true of kick and even snare - where you don't care as much about spacial information - just more about energy and the right tone.
So, if you're listening to your B1 - notice how much more detail and imagery it can pick up than your V67. But also notice how the V67 can give a more classic, almost retro sound. The B1 sounds much more modern than the V67.
Dan Richards
The Listening Sessions
The Project Studio Handbook