The rendering of colors is the same under Vice and my real C64, same colors.
Not on my TV, that's for sure. The C64-II has paler colors than the original C64, but not that pale as the standard color settings in Vice. Vice has an external "default" color palette, which looks pretty good. But the people mostly didn't use it.
WinVice - No external palette
WinVice - external "Default" palette. The proper one.