I think that this idea has merit, especially if CCP takes a page out of Warframe’s book for revamping the SKIN system, provided the game’s code allows for it.
The basic principle of Warframe’s cosmetics system is that there are several skins for each 'frame and weapon, along with a variety of universal color palettes that a player can use to customize each skin; it’s very rare to see two warframes that look exactly alike.
Each skin and color palette aside from the defaults can only be acquired by using platinum, the game’s premium currency. While you can acquire platinum without spending any of your own money by putting in the time and effort to trade for it, new platinum can only enter the economy by paying real money for it, just like PLEX in EvE.
There are also emblems and sigils that players can use to adorn their 'frames and companions, as well as ephemera that create special effects. Emblems belonging to a particular syndicate even have a practical use by earning you standing with that syndicate when you complete a mission wearing one.
I think that changing the SKIN system to allow players to customize the color of their ship and the emblem displayed upon the hull like Warframe does with its cosmetics system would be an excellent idea if the game’s programming allows CCP to implement it. With this system, players wouldn’t be able to cover their ship in swastikas or other offensive images, nor would they be able to recolor their Thorax to look like a veiny 291-meter long phallus.
For letting players and fans make custom SKIN designs, Warframe has TennoGen (which I’ve mentioned before). As an incentive for artists to create these skins, each TennoGen design can only be purchased using real money which is split between Digital Extremes and the creator. Some of those cosmetics are so amazingly detailed that it just boggles the mind, and you can’t visit one of the in-game trade hubs without seeing at least a dozen players running around with something bought via TennoGen.
One artist was even lifted out of poverty through the money he made from it!
I think that if CCP were to implement this system for in-game cosmetics it would benefit them from the additional revenue and the players by giving us additional freedom to customize the appearance of our ships. Significantly cutting the prices would also get more people to buy cosmetics in the first place.
The color picker is an obvious first choice, but it would also be nice to have various animated effects like what we see on the Sariel’s Flames, Angel’s Hex, and Abyssal SKINS as something we could apply to a hull regardless of which SKIN pattern we were using. Holographic banners like what the Yoiul Festival SKINS have would also be a plus.
The ability to gain/repair standing with various factions by having their emblem/colors emblazoned on your hull (or even damage standing by doing something they don’t like), but I don’t know if the game’s programming would allow it.