Yeah, I run into this quite often. Just because you *can* set your power effects to supernova neon yellow, pink, green, or red doesn't mean you *should*. Unfortunately the only recourse you have is to turn down particle effects. I've had to do it a few times. And yeah, it sucks. Having the option to turn down other player's effects but not your own would be amazeballs.
Depending upon your video card you might be able to play around with custom colors settings that would desaturate things a bit without having to reduce the particle effects. But honestly there is no great solution.
The only thing I can think is that people doing this have older machines with the graphics turned down and they don't see what we see. I teamed with someone whose bubbles were so bright I literally couldn't see a damned thing while inside Dispersion Bubble. The live devs didn't think this thru when they chose the custom color palettes. None of the custom colors should be as saturated as they are.