When considering the price of the OS, remember the living color wash process adds to the cost as well. The Washed Mercer Tee had a 35% price increase ($26) over the standard Mercer Tee, so taking that into account, a standard, unwashed OS would retail at $128 at the least, or $176 at the most.
I won't be surprised if the oversized hoodie comes in the normal terry. Maybe as a limited item but the demand is too much for this not to happen.
As for living color, what's supposed to happen with wear. I'm curious to see what a well worn item will end up looking like