I really like the image of a warlock seeing things that the "normals" don't see. The warlock's world is strange and mystical, filled with colours that don't actually exist. It fits the theme of someone who has made a pact with an otherworldly entity.
As the posters above have said, detect magic is not overpowered.
It is not "detect invisible". If someone magically invisible comes within range, all the warlock knows is, "you sense magic." If someone is wearing a magic ring under a glove, all the warlock knows is "you sense magic."
If the warlock can't see the item or person then they see no aura and cannot determine the college. If they see no aura then they don't even know where the person or item is.
A GM might give the player some information over and above what the spell provides (like the direction or intensity of the magic) but RAW all the spell actually tells the caster is "there is 1 or more magics in range."
Finally, and this needs to be stressed, detect magic requires concentration. This is a precious game mechanic which all the really useful effects use. If the warlock's player chooses to spend their concentration slot of detect magic instead of hex, reward them for it.
You do point out something - detect magic will probably always be detecting magic with most parties. Someone in the party have a magic sword? You know there's magic within 30 feet.
Unless you are spending actions every round to locate specific items, it doesn't tell you much.