I think there's too much colours for the player to be able to intuit what they mean; it's not really obvious why there are two reds and what their differences are, for example.
Colour coding is a really handy way to draw attention to important names and words, but to work it must be limited to the ones which truly are important for the player to know. I'd dare to suggest that the most useful way to use colour coding would be to only colour things which have gameplay relevance in the current mission or are otherwise central to the campaign; names of ships and wings, basically, and of course also objectives. So, in this particular example, I'd colour only "disable one of the corvettes" and "Excoriator". I wouldn't really mind giving some subtle emphasis on other important words, but they should be as subtle as dark blue in the screenshot in order to clearly remain things of less importance.