When I lived in the States I never thought about the fact that "cold," in this context, really just means "the ambient temperature." Or rather, in the States tap water is only predictably cold because it's coming into your house from underground pipes. Here in Qatar, "cold" water comes from the water tank sitting in full sunlight right outside your apartment. At this time of year, that water can in no way be described as "cold."
Some people switch the hot and cold taps during the summer. Turning off your water heater converts your hot water tank (which is indoors, and thus air conditioned) into a reservoir of cold water. That "hot" water can then be used to cool down the actually-hot water that comes from the tap marked "cold." It gets confusing to remember which tap is which, though.
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I washed dishes at a restaurant for 4 summers in high school. After the second summer, they switched the hot and cold on one of the sinks. Every night after, I would burn myself at least once (this place had 160 degree Fahrenheit hot water). I could not rewire myself completely for hot on the right, but I'd never realized how ingrained the pattern of "hot-left cold-right" was.
Thats why the guideline is there :).
Here's even a little way to remember which is which. Blue is the colour of the sea, and rain, and sky, and outdoor things. Therefore blue is the colour of the outdoor temperature.
Red, on the other hand, is the colour of tapestries, couches, the lamb's blood over the door, and the tomato juice in the fridge, and all sorts of other indoor things. Therefore red is the colour of the indoor temperature.
Easy-peasy!
(Anyway, the lamb's blood had better go on the OUTSIDE of the doorframe, or else the Angel of Death will only know you're Jewish when he's LEAVING, and by then it's a bit too late.)