Stream markers is how all of the built in macro code I've been reading colors text (search, isearch, regex evaluator, dynamic surround, the built in as-you-type paren matching highlights). I don't remember for sure how I first found stream markers, I think it was from examining the search/isearch highlights. I don't know yet whether syntax color coding uses them.
Stream markers move as the text they are attached to move, and they overlay the underlying color rather than replacing it. Both make it much easier to remove the coloring properly afterwards, but they also mean you can overlay your color only once and let the rendering engine take it from there - e.g. no need to reapply it yourself if text moves or if the window gets repainted etc.
I don't yet know if you can apply only a foreground or only a background color. The cursor line coloring seems to only affect the background color, and it alpha blends with the selection color, so I suspect there may be a way to set foreground-only, background-only, or perhaps alpha blended colors.