Marquetry depending on how one defines was practiced in Egyptian and Roman times. Pierre Ramond says that King Mausole was the first to use it in his palace in 350 BC. It was widely use for the rich in the 17th , 18th, and 19th centuries in Europe. It was less popular in the States, until the last century. My great grandfather did inlay work on doors and trim for luxury Pullman rail cars around the turn of the century. I personally was introduced to the art at Berghoffs Restaurant in Chicago, IL. I dont know whom the artist was who did the beautiful wood pictures at Berghoffs but I know he did them in 1897-98. Marquetry today for the most part is still traditional. Being that this is art most people feel dyed, stained, painted wood, plastics or other artificial products dont belong in to art, but some marquetrers use them in their contemporary or abstract works. Although palette of wood species is pretty diverse, some colors like the blue-greens, blues, and indigos are missing. Most marquetrers feel this is just a challenge, not a justification for using dyed woods. Paging though the past twenty years of Fine Woodworking Magazine most of the inlay work is traditional. I personally would not work with any colors past what is natural, but I have seen beautiful work using dyed woods.
The full text and figures of small book on inlay and marquetry