This is very simple I don't understand the fuss:
Bromine water contains molecular bromine Br-Br
Molecular bromine can be instantaneously polarised, and this polarisation is increased and stablilised by the electron density in the Benzene ring.
The bond in the bromine molecule breaks heterolytically, the bromine cation is a fairly powerful electrophile and bonds with benzene ring using the delocalised electrons. This creates a delocalised positive charge, inducing instablility.
The C-H bond, on the carbon which has bonded to the Bromine ion, forming C-Br, loses a proton, by the breaking of that C-H bond. The electron pair from this bond are delocalised, back into the pi orbital above and below the plane, thus regaining the delocalisation energy.
As for decolouration, you wouldn't see orange - colourless, I'm guessing, because HBr would be formed, this would probably dissociate into its ions in solution, the Br ion if its hydrated and the Bromobenzene may absorb photons from the visible part of the spectrum, any ideas on this?