My theory was that with all the different colors, the species as a whole has more of a chance at survival by being able to blend in to a number of different surroundings, but I hadn't thought of birds and their awesome eye sight. The only thing that I disagree with in your theory is where you said that the ones with the odd colors would be more likely to survive. I think that the more common colored animals represent the colors that are most successful at blending in with their surroundings, which would go along with the laws of natural selection. That said, I totally agree that with birds having such excellent eye sight, the myriad of colors would certainly help to confuse them. All in all, you have an excellent theory. 
It's also true that they're beginning to be selectively bred for certain colors and patterns, to the point that the appearance of the offspring is becoming easier to predict. As time goes on, though, I think that we'll see stronger and stronger genetic lines of reds, yellows, oranges, and all the cool pattern variants...and most exciting of all, pattern/color combos, such as bright red colored animals with flame patterns, etc.
>>This is an interesting question. What I have been lead to believe by the literature is that the color morphs in cresteds are randomly generated. This is a defense mechanism that that is meant to confuse predators...especially birds. Birds utilize color recognition to a very high degree and will imprint the color of a prey animal so they can rapidly locate their food. Since cresteds come from a south pacific island, the sea birds compete agressively with one another and will overlook some lizards that aren't what they consider the right color. So the most common colors get eaten while the odd ones survive to reproduce. Having random colors insures the survival of the cili's. That's not to say that the genes couldn't become predictably isolated as breeding efforts move forward...I just don't think the species is at that level yet.
>>Someone please correct me if they think I'm wrong about this.
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Anthony Caponetto
http://reptiles.drivennewmedia.com