its like your glass bong.. the more you use it the more beautiful and colorful it gets

mine is a nice blue and gold color now.

If you read a lot of posts here, you will find that this IS a rather common thing on the LS650.  If your bike is a newer model (with only 950 miles and still under warranty, I would guess it is a late model year), the carburetor will be set to run rather lean, which I think tends to make this blue-ing worse.  What we all know is that this discoloration does not necessarily mean there is anything wrong.

For now, I would suggest leaving things as they are - any modifications you may do will probably void your warranty.  I can tell you that, after changing the muffler and doing the white spacer modification in the carb, my wife's 2003 seems to run better (it certainly hasn't created any problems).  What suprised me was that a lot of the blue has faded into a light gold / tan discoloration.  I realize that this is because the engine is running richer now, but I didn't think the blue coloration would go away that much.  When we were shopping for a good used LS650, we found that almost every one had the same blue discoloration on the head pipe.  I think it is one of those "endearing" qualities of the bike.  Once your warranty is up (or when you' ve decided you don't care about the warranty), you could do what many of us have done and reset the carb to run a little richer.  There are many posts about that on this board so just do some searching.  I don't know of a way to completely keep the head pipe from turning colors.  I think that would require custom heat shields like the ones that usually come with custom pipes.  Or, you could just park the bike and never ride it.  On the other hand, that's a lousy idea.  

My '87 has 8,000 miles on it, and the pipe was a little blue at first. I got it running after a 4 year storage, and now the pipe is blue right at the engine, and then it fades into several shades of honey/gold, all the way down to the heat shield by footpeg. I need to rebuild carb again, and maybe do some re-jetting, as bike does not run real well at the moment. ( wants to die on decel/idle )

Mine didnt turn blue while I was riding. I had quite a few miles on, somewhere approaching 500 I think, when I was running it in the driveway, trying to listen to the valves & blued it gassing it & letting it idle down. Till then, it looked new.