For most color correction issues, why is this a bad thing?
Grading without correcting will yield less than predictable results. You may get lucky, but sometimes, you're going to paint yourself into a corner and not know how to get out.
Do you think your dad would be able to tell the difference between magic bullet vs resolve corrected shot?
How long is a piece of string? It will depend if the footage requires any correction before you graded or not. You know how some people tell that a video is amateur by its sound? Some also tell by the way the film looks, which is partially determined by the grade. They won't always be able to put their finger why it feels amateur.
Wouldn't it be strange to expect the producer of a low/no budget film to care about color so much?
It's about the same as a producer of a low/no budget film to care about sound. Even about as much as they care about having a good editor, sound designer and so on. Hell, it's about the same as them with named talent or a good script. So, yes it is strange.
It would be unreasonable for me to spend less resources on lighting and more on color, wouldn't you agree?
It's a ball of string question. I haven't seen the material so it's impossible to have an educated opinion of what you need. Do you trust your knowledge of color grading to know what you need and what's the best course of action for that stage of your production?
A production can get let down by its weakest link.
If my timeline for finishing my film keeps getting pushed back. My time is so limited.
Just think of the good old Cheap, Good, Fast triangle. Pick two. If you want good and cheap, you're going to have to take your time. If you want fast and cheap, go your magic bullet route. If you want good and fast, expect to pay for it. Only you can determine your objectives and needs.
This is very tempting indeed, but how would this work online exactly? I've got 3.5TB worth of files.
There's a teeny tiny, little company called FedEx. I hear they may have a solution. Include another drive for the export(s) you require.
a colorist doesn't edit every single clip of footage you've got..
It depends on the workflow, but the fact that it sounds like it's already been edited, so doing a light grade/correction while transcoding for the edit probably isn't going to happen. I've done it for a production before, so it can happen.
you give give them the final product and they work on it directly.
Its one option. So long as the editor exports it correctly and the encoder doesn't do anything silly you should be fine. In my opinion it's far from ideal, though it can depend on what needs to happen to the final footage. It's why using an EDL and the original footage is the workflow that is used most often.
Good luck!