Suppose your domain is Dogs.com and your keywords are: blue dogs pink dogs orange dogs Should you group them, or if you create a new domain...like bluedogs.com, pinkdogs.com, orangedogs.com....and each keyword, just one word, will be blue dogs, pink dogs, orange dogs, respectively. Is this method better for a better QS?
Technically, it will help. Is it a bit excessive? Yes. But does it have a positive boost? Yes it does.
You don't have to go to the extent of getting a whole new campaign (although it would definitely help) but focus more on having relevant content on your landing page. Also include the keyword insertion tool in the ad and you shouldn't need to create different groups for each keyword type.
create a new page for each color. Link that page to each keyword specifically. link these pages to each other. and put in the keywords in one ad group. You'll get a great quality score.
I would recommend you to focus on the landing page. Google would know that you have 10 different website names eventually. Optimize your keywords, then your ad, then you landing page.