I don't mind there being dyes that are purchased from the crown store but the current system is really bad.
1. Crown store dyes can only be applied to costumes and hats.
2. You cannot preview the dye. You have to guess it might look ok.
3. You have no ability to assign the colors to different positions. You can choose things like "Awesome Color Scheme: red, blue, red" or "Marvelous Sheogorath Color Scheme: red, red, blue". Which one will look best? I have no idea.
First, allow dyes to be applied to armor. Then a much better and more friendly way of using the dyes would be to allow the purchaser to preview the dye on their currently worn armor. After purchase they can then access it from a dye table and use that palette once and assign it how they want.
I almost always mix and max different armor styles so if it is ever changed to allow dying armors it would still be important that we be able to assign the positions. One piece may look great as, for example, red, green, red but another piece looks better as red, red, green.