This lighting I think is bad because the colors are not used into a productive manner. They don't highlight any specific aspect of the stage and they're not complimentary; it's just not well done. There is no homogeneous flow to the lighting that makes it easy on the viewer to follow the action on stage.
While I agree this would not be a good light in a theater setting as it just uses all the RGB colors at once in no noticeable pattern as to make it meaningful. It does not look like this light was being used on a stage just how it is hanging on a wall like that.
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