It's because Illustrator already contains another tool called 'Live Color'.
Open Swatches panel. Click on New Color Group Icon (bottom tool bar of panel). Give any name and click ok. Notice that a circle appears on toolbar. Add any color swatch to this color group and click on circle to see Edit colors.
Another way is to select any existing color group to see Live color option.
I understand how to edit color groups from within live color. I guess my question wasn't entierly clear. It really isn't the create feature I'm intersted in at all, but rather the Save option available within it. My primary goal is to be able to save Kuler themes from within Illustrator and then access them later by viewing the Saved themes from the dropdown in the Kuler extension. That way I can keep up with just the Kuler themes I like even if I clear my palette of all active color groups. I guess an even better feature would just to make your Kuler favorites viewable from within the applications, as that would save the time of having to edit and save them. Is there another way I can easily access the themes I've created via the website from within the program?
How about Custom Search feature?
You can use your userid as search criteria and access your public themes in kuler panel. And to avoid typing it each time, save it as custom. This way it would available in your feeds dropdown itself.