Incorrect, there are single color white (which tend to be rather bluish, like that you might see in a flashlight), and other single color LED's on die. And there are RGB primary colors on a single die, LED's that can be very accurate with colors, more so than the CCFL backlights currently in LCD screens.. Go to Cree's, or Nichia's websites and read up on them.
However, I think this story is pure bogus speculation. While it is technologically possible, I'm not aware of pricing that would make this possible currently (I could be wrong about that, perhaps we are now at economy of scale just like with NAND memory starting to replace hard drives in iPods, and in a year or two, laptop drives).
I should point out that according to Sharp, in announcing larger sizes of bigscreen LCD TV's earlier this year (or was it last fall?) latest LCD tech was upping the ante as far a color reproduction, but LED backlighting can surpass accuracy of any other LCD tech. LED backlit LCD's have the widest current color gamut, as well as accuracy (other than old some very high-end CRT's). Tests have shown this to be true (I forget which PC centric site published a review). Do a search on NEC's early LED 21in monitor, and you'll find that review re: color accuracy.
http://club.cdfreaks.com/showthread.php?t=195959
What is interesting is that you can see a visible difference in colors being displayed in the demo picture at the link above, but without being there in person, you wouldn't be able to see that full color gamut via images posted on the internet

.
Samsung's just announced/released 20in XL20 model, designed for professional uses, is naturally quite expensive at $2k list. But they have also announced (hasn't shipped yet, but is supposed to be available now) a 40in LED backlit LCD TV with estimated $3,000 price tag.
http://ledsmagazine.com/articles/news/3/11/6/1
http://www.macnn.com/articles/06/10/25/samsung.xl20.display/
http://www.samsung.com/PressCenter/PressRelease/PressRelease.asp?seq=20061104_0000298342
"Traditional LCD screens typically cover only 82 percent of the NTSC standard color gamut (CRT covers 76 percent), while the new XL20 utilizes a unique light emitting diode back light unit (LED BLU), increasing the color gamut up to 114 percent of the NTSC color gamut.
The LED BLU increases the ability to create significantly enhanced images producing a more natural range of color, and covering the full Adobe RGB natural color space / gamut."
Being the 1st of it's kind the 20in XL20, if engadget is correct on the spec's is a very disappointing brightness of 250nits. While Cree has newer, 70lm/w and 100lm/w very small size efficient LED's, they are leading edge tech, so even in quantity, I doubt you could get them at a low enough cost to produce a screen with 1,6knits; most dubious figure I see in the Digitimes 'rumor'.
http://www.engadget.com/2006/09/22/samsung-busts-out-the-720td-711nd-and-xl20-lcds-in-japan/
OLED (which does not require backlighting, given that technology) in theory would be capable of being more accurate, but last year's announcement by Samsung of a 40in prototype OLED TV, was producing something on the order of only 80% of the NTSC color gamut, IIRC. LED backlit LCD's in large screen TV's are more accurate.
Less accurate color reproduction, lower cost LED's that might be bright enough, could make it into a laptop screen (or desktop monitor, no reason not to have them there) this year, but probably not until later in the year, when prices come down, technology scales up on the latest gen of LED's to make it so.
Best thing about LED backlighting, besides greater color accuracy, wider color gamut, is
evenness of illumination of the entire screen, one of the big flaws of current LCD screens used in laptops.