I'm a bit confused by your question and your setup, but no, this is not why I was saying it's best not to add color in the Terrain group (or maybe it partly is, now that I think about it). Basically it's because the Compute Terrain node that normally forms the exit point of the Terrain network basically takes a holistic look at all the displacement above it and makes it so you can apply color in a consistent way to the terrain, using correct normals and texture coordinates. Without that, results can be unpredictable, not disastrously so, but worth being aware of at least. So the reason I say maybe it "partly is" above is that your question is unclear to me, but perhaps you're in part confused by how the texture aligns (or doesn't) with your terrain displacement.
Anyway, I looked at your TGD and your Power Fractal is providing both displacement and color. When you mask it by the same shader that is providing color above it, you get color that is in effect semi-masking itself in reverse, or something... It's confusing, hah. Suffice to say this is not a node setup I would recommend. First, avoid using color above the Compute Terrain, for reasons I hopefully explained above. Second, if you want to visualize the output of a particular shader, the best option is to simply plug it in to the made shader chain at the bottom of the Shaders network, which will then show you its color (if any) and displacement (which you may want to disable) applied to the terrain directly.
- Oshyan