I don't know if that's due to the ammunition used or not, but yes, it was very fancy looking. For all we know the guy could be rolling with a full load-out of DeWilde rounds.
I think i'm going to do away with tracers for machine guns too, not because i don't like them (i do a lot) but to maintain the surprise factor.
Flying for the RAF means going mostly against big targets anyway, against 109s the fact that you have 8 rapid firing machine guns and it's a smaller, easier to damage aircraft will even things out.
I think it could work for German aircraft as well. I'm thinking of not using tracers on the machine guns to maintain surprise and line up the shots (after all, the 109 and 110 have a notoriously big magazine for the small guns), but keep the cannon tracers to help with their funky trajectories when finishing the bandit. After all, i do like the smoke trails a lot