If I wanted a lighter color, would a clear oil like linseed instead of the permalyn help in that regard?
Linseed and Permalyn produce similar colors. Hardware store linseed oil is a bad finish and we don't recommend it. Tried and true linseed oil is high quality, partially polymerized to help it dry, and has added rosin. If you want a lighter finish, the choice of oil is not where the change comes from.