It does not affect perception. This is one of those early anthro/cogsci results that said more about the authors' cultural bias than it did about the people being studied, up there with "Eskimos have a thousand words for snow".
It affects communication. People can still discern the difference between colors, they just don't have an easy way to communicate this difference to others.
The Japanese language until relatively recently didn't have a clear verbal distinction between what we call green and blue in English. That doesn't mean Japanese people can't tell the difference between green and blue. It just means that there is a kind of "blue" that is the sky and a kind of "blue" that is for traffic control lights, and in context nobody is confused.
The same issue can occur within a language between people with differing levels of study of color. A graphic designer might say a particular shade of green is "chartreuse" that his boss instead might call "yellowish green".
This article says almost the exact same things I said in my post. I also don't see where it definitely says the Inuit language has a richer vocabulary for snow than other languages. It just ends with a joke about how such a thing might come to pass. A casual observer here who doesn't bother reading the link might take it as a refutation from your wording, but it actually very strongly supports what I had to say.
As for the "Russian blue" study, I find it strange that the article is so skeptical of unreplicated results in linguistics and yet seems to accept the "Russian blue" study uncritically. I can see at least one glaring flaw: all of the Russian speakers were bi-lingual with English, with at least some of them being so since they were young children. They also discarded 16% of their test data because they deemed responses "too slow", with this discarding more heavily weighted towards the Russian speakers.
Wonder how this applies to animals since their color discrimination would not be impacted by language. Did humans evolve linguistic abilities that alter sensory processing? Seems odd that animals would be able to discriminate colors their eyes can see just fine, but humans would need words to do so.
Good question. I'm no expert, but I guess that the key issue is one of categorization. Without language, it is impossible to effectively categorize our perceptual domain.
It is also true that among mammals, chromatic vision is pretty much restricted to primates. The ability to perceive difference of light is a must if you don't want to become someone else's food. In contrast, chromatic vision is an 'extra' that in many ways serves as a (literally) florid extension to our lives. To me it is no surprise that range of emotion and range of hue are so often associated with each other. Interestingly enough, they are similarly mapped: as a set of differences, rather than as a degree of intensity.
Check out "Basic Color Terms: Their Universality and Evolution" by Brent Berlin and Paul Kay.