This change has really thrown me for a loop and slowed me down in the Finder. It may be difficult to understand unless you rely on colored labels as quick visual reference, as I have done for years.
The tiny dots are not as "glancable" as colored hilghts across the name of a file or folder. In list view, the dots are almost disassociated from the files names being so far from them. What used to be a single glance at colored stripes, is now a shifting of eyes back and forth, switching from reading to color recognition, to reading to verify, to checking the colors again.
It sound whiney to complain about such a seemingly small thing, but I am quite surprised myself to find out how much I relied on hilighted file names, and what a different cognitive exercise is has become now.
Yes, there are lots of alternative ways to find and manage files, but none as easy and glancibly quick as hilighted file names.