Categorization of events allows to set custom colors for each category. This color setting is used to color elements in the Activity view (http://localhost:5600/#/activity/xxx/view/). However, the color setting has no effect on the color of the elements in the Timeline view (http://localhost:5600/#/timeline).
I suggest that the elements in the Timeline view be colored according to the (custom) color settings.
Screenshots of Activity and Timeline view