Tulle will work as a diffusion material. Scrim jim diffusion fabric is more or less the same stuff, but Westcott takes the guess-work out of using the stuff by telling you how much it cuts the light output. They select the fabric for properties of interest to photographers/videographers.
Tulle (and illusion, another fabric with a tighter weave) may or may not affect the color balance, depending on the properties of the material it is made from. I assume you mean the white and/or black colored variants. Other colors would of course affect the color balance to some degree. It does not tear or rip easily. It will sometimes snag on things, due to the open weave, but it's pretty durable stuff. I shot a series in what amounts to a wind tunnel and it held up fine.