Add suggestions of @jgm: parse bracketed stuff as inlines

src/Text/Pandoc/Readers/LaTeX.hs

@@ -418,9 +418,15 @@ blockCommands = M.fromList $
 
 blockTextcolor :: PandocMonad m => LP m Blocks
 blockTextcolor = do
-    skipopts 
-    color <- braced
-    divWith ("",[],[("style","color: " ++ color)]) <$> grouped block <* notFollowedBy inline
+  skipopts 
+  color <- braced
+  let constructor = divWith ("",[],[("style","color: " ++ color)])
+  inlineContents <|> constructor <$> blockContents
+  where inlineContents = do 
+                            ils <- grouped inline
+                            rest <- inlines
+                            return (para (ils <> rest))
+        blockContents = grouped block
 
 graphicsPath :: PandocMonad m => LP m Blocks
 graphicsPath = do

test/command/textcolor.md

@@ -33,3 +33,20 @@ Hello \textcolor{blue}{\textbf{World}}
   [[Para [Str "Item",Space,Str "1"]]
   ,[Para [Str "Item",Space,Str "2"]]]]]
 ```
+
+```
+% pandoc -f latex -t native
+\textcolor{blue}{
+\begin{itemize}
+    \item Item 1
+    \item Item 2
+\end{itemize}
+} some more text
+^D
+[Div ("",[],[("style","color: blue")])
+ [BulletList
+  [[Para [Str "Item",Space,Str "1"]]
+  ,[Para [Str "Item",Space,Str "2"]]]]
+,Para [Str "some",Space,Str "more",Space,Str "text"]]
+```
+