This is basically correct, BUT the oxide layer on iron forms slowly in normal atmospheric condition. It is called "flash rust" when it gets more intense. It can be accelerated with higher temperature, so the above described colour changes can be seen when heat-treating carbon steel. In the West, these annealing colours are traditionally a guiding factor in tempering (= YAKIMODOSHI).
As described above, the colours forming superficially are indeed super-thin layers of iron oxide, BUT they are not very stable and can be polished away. A straw colour would then correspond to an annealing temperature of about 200°C.
In this case I don't see how such a colour would remain on a blade after the TOGI process, but a KANAHADA NUGUI (made with finest powdered magnetite (FeO x Fe2O3), suspended in oil), could darken the steel to an extent. If this magnetite is not pure and contains some hematite, the blade can even show a brownish hue.
In the course of time, and with regular UCHIKO treatment, this colour will fade, resulting in a clean metallic surface.
This is what I come up with when trying to explain the above described colour changes to myself.