warning – speculation ahead! – warning
Very generally, there are <figures mentally>…three!..uses for color amongst animals:
- Attract mates
- Warn predators
- Hide from predators
Item #1 should be fairly obvious. Item #2 is commonly found in posionous species (or those who mimic them). A variant, I suppose, might be the use of color to warn one’s fellows (as in white-tailed deer). Various forms of camouflage fall under the third category.
Now, it seems to me that for bright-colored fishies, the bright colors can serve equally well for items #1 and #3 (the colors can help to disguise a given individual fish in a school, much as a zebra’s stripes help to disguise an indiviudal amongst the herd – that is, the rest of the school acts as the background against which an indivdual can camouflage itself).
It seems to me that warm-climate fishies tend to congregate around coral reefs and the like. And, of course, whenever there is a large congregation of critters, predators will also tend to congregate. So, these warm-water fishies have two problems. The first is to mate. With so many other fishies in the area, members of a given species need to be able to identify one another. Bright, wildly-varying colors would work well in this regard. The second problem is survival. This is aided by gathering in large numbers, whereby any individual gets “lost in the crowd”, and the bright colors further help in this regard, as mentioned above. Predators, then, can generally only make out a generic “cloud” of fish, and cannot single out any one individual.
In colder climates, one tends not to see such gatherings of various fishies, except, perhaps, during seasonal mating periods. As such, schooling is typically less pronounced, therefore bright colors would only serve to make one stick out, rather than offer a source of camoufllage (during mating seasons standing out from the crowd is a good thing, of course). Where one does find schools (typically in river environments), drab colors or simple countershading probably work better than the bright, showy colors of more open-environ, tropical fish.
(Please forgive any factual errors with respect to what kinds of fish one finds where. I am regrettably quite ignorant about much of the natural world, and the above is based on speculation from an adaptive point of view.)