Regarding...
>> 2730TranslucencySlider-di -- Dan Ingalls -- 28 September 2000
>> Adds a slider effect to the translucency control of the color picker.  Fixes a couple of glitches in moving from modal to modeless operation.

Karl Ramberg <karl.ramberg at chello.se> observed...
>When alpha is set to transparent( alpha: 0), on reentry to the color
>picker the color is
>set to opaque ( alpha:1).

Right you are.
A fix will be forthcoming but in the meantime, you can replace the last statement in 
	ColorPickerMorph.trackColorAt:
by...
	self updateColor: (pickedColor alpha: originalColor alpha)
		feedbackColor: pickedColor

Thanks
	- Dan