Hi Robert,
Yes, that is true. It is generally the atmospheric moisture concentration that affects color richness/brightness directly. While sometimes referring to the smoke negatively affecting color richness in my weather reports and reviews, this was not meant to be implied as a direct cause in drowning colors in the strictest sense, but rather how a given show’s color vibrancy would likely “appear” to viewers in a situation where smoke accumulation is significant and/or displacing unfavorably towards them.

As a result, the effect of smoke on fireworks colors is more optically-related, as opposed to the smoke being a direct impact on the colors themselves (as you mentioned above), since it essentially hides the fireworks over time.
Whenever relevant, it is mentioned in the weather reports that if the “humidity” is high enough (i.e. often when surface dewpoints are 18 Celsius or higher) and/or if the air is (near-) saturated or damp, then overall color richness would be more negatively affected. The influence of high/very high humidity is actually two-fold, as larger humidity concentrations also encourage a higher degree of smoke build-up, which, in turn, affects viewing, especially if the wind direction is unfavorable and wind speeds are weak.
So long as such environments are present, even if there is sufficient wind speed to clear the smoke quickly enough, color quality could still be affected more noticeably than it otherwise would in a scenario where the humidity is considerably lower. While certain colors will be less impacted than others, these conditions are notably influential on already dimmer hues, such as deeper, darker blues or charcoal-variety fireworks.
Trav.
