Flashing aspects at the time of the Colwich collision were in their infancy (and were at this particular installation) and as I recall without looking into the precise circumstances were implemented at Colwich such that the flashing sequence was given for the first of two successive diverging junctions. In the case of Colwich the first in direction of travel was from the Dn Fast to the Dn Slow but NOT the subsequent divergence for the Dn Stoke Line situated in the next signal section. The driver mistakenly believed the flashing sequence implied they were clear to proceed throughout the junction.
In fact, there was no divergence, in the signalling sense, at the next signal. i.e. the main route was to the Stoke line from the down slow; there was a crossover back to the down main towards Stafford. Otherwise, what you say is right.
There's a map at the end of this:
https://www.railwaysarchive.co.uk/documents/DoT_Colwich1988.pdf
As commented there, and very much related to your point, the flashing yellows were for a crossover but not for the geographical junction. From page 15:
"While the extension of the use of flashing yellow aspects was in itself perfectly safe, I have no doubt
that their extended meaning should have been more clearly explained, particularly where flashing Yellow
aspects lead to a crossover which in turn leads to a signal controlling a true diverging junction, as was the case
at Colwich at the time of the accident."
Yes,that sounds correct to me. However the circumstances in which we wish to encourage a driver to clear the junction as quickly as possible (by providing flashing aspects) whilst simultaneously instructing him / her to slow down (by means of approach control on the subsequent signal) might make for an interesting risk assessment.
Indeed, but, to pick up one of your earlier points, that does provide a very speedy way of getting trains into platform loops. Ideally, I guess, you want the turnout speed to be fast enough when combined with flashing yellows that the driver can simply make a normal approach to the platform and, in a sense, not actually have to worry about the turnout speed at all. In the past that arrangement - signal at the end of the platform staying at red - was certainly in place at Lancaster and Reading, just off the top of my head.