That all makes sense to me Bagginsbill. One clarification though: you are talking about what I said with the color of an object being what light we see bounced off of that object when you say, "diffuse reflection" correct? 

Or are you more specifically discussing what is referred to as Diffuse Reflection in the article that you posted in this thread?

http://forum.runtimedna.com/showthread.php?44077-What-exactly-do-Diffuse-Specular-nodes-do&p=500402