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In http://www.w3.org/TR/SVG/filters.html#feDisplacementMap there is a line The 'color-interpolation-filters' property only applies to the in2 source image and does not apply to the in source image. For feDisplacement map we can convert the in2 source image before we work on it but what are we supposed to do with the in source image? This needs to be clarified. See email link: http://lists.w3.org/Archives/Public/www-svg/2007Aug/0010.html
From the description given to me the Gecko implementation seems to be doing the correct color conversions when applying the the filters. In the feDisplacementMap effect one image gets moved around (in) while the other image contains the vectors to do the moving (in2). 'color-interpolation-filters' specifies the color space for imaging operations. Since the actual color values of (in) are not changed just moved around, there are two options: a) The image should be left in the color space it happens to be in b) The user agent can pick an appropriate space for the image. Both options need to be discussed by the working group. Currently It is not entirely clear what happens to (in).
After discussion the working group has resolved that the (in) source image must remain in its current color space.