Title.

You can still use Minecraft dyes like normal. This should be removed to actually "force" the liquid dye recipes.

The old mod also mentions this, but this isn't true.

Well, it works as intended but is limited to dyeing of wool, glass, hardened clay and concrete in the original mod version. You can still dye beds and mix dyes regularly currently which probably gets changed by us in the process.
What are the other use cases you have in mind?

Mainly all of Vanilla and TFC's dye-able items, not just the ones listed above.

The old mod and this fork never mentioned this anywhere, mainly why I opened this.

We didn‘t change anything concerning this yet, but indeed, the original mod post was quite vague in this regard.
Noted for the next update.

Alright, thank you.