Is this really a big deal? Not sure I see the correlation between marking in purple and "passing everyone." It seems a classic "OMG-liberal-touchy-feelyism-is-ruining-teh-country" type of story that focuses on what is really a minor issue, is designed to elicit the reaction above, and keeps attention off of the real issues confronting public education.
At the end of the day, what does it hurt for educators to write in a color other than red? Are red pens cheaper, or is the goal to ensure that children receive the exact same treatment we did?
No Child Left Behind will ensure that the slower kids are flunked out anyway, so who cares?