I have fine hair too and by having a shorter cut you don't drag down the hair and it has more poof. Lots of layers are not good for fine hair but the cut you showed was not extremely layered. I like having the front a bit shorter than the sides.

Color? Whatever you want. Probably better to avoid extreme changes in color though. My stylist has been putting bronze highlights in my hair for thirty years now. My natural color is brunette and I decided having highlights every six weeks was a bit much after one of my patient's family asked to speak to "that blonde nurse". LOL