tl;dr: Friends-Only instances and Orange status are extremely anti-social, restrictive, and deterring. There should be some basic non-joinable information about what they are up to, such as just the world, but not the joinable id, in order to give a basic idea what they are up to and to give incentive to try requesting.
----
Over the years, VRC keeps implementing more and more means to break up and damage the sociability of a social platform. I, and many others, are tired of seeing a friends-list full of "private", and it's only exacerbated by people who are in friends-only worlds showing as private as well.
I understand this change was so that people couldn't use the website or other means to just manually join a friends-only world, but that doesn't mean that it can't show the world they are in - merely exclude the instance id to prevent the ability to join without being a friend of the owner. With this it would be easier to tell who is actually in a private or not.
Potentially orange status could show the world as well if not in an actual private world (invite/invite+), again excluding the instance id without an invite. As it stands, orange status is barely different from red, and in a social functional sense, it may as well be the same, because most people don't even bother trying to request if they see orange status, giving more or less the same effect as red. Orange should be there to filter who to accept, not to deter the motive to be requested on - if they don't want to be bothered, they use red or turn off UI.
The point is to give some basic information that can inform friends what they are up to, while not giving a loophole to break-in, for the purpose of giving others an idea of whether it's worth requesting to join or not.
The issue is that in most cases, if it merely says "private", nobody has any idea what they are doing unless they've been otherwise informed; they could be doing rp or other organized event, could be having personal time with someone, could be sleeping somewhere, nobody has any clue, and 9 times out of 10 they will opt to not even bother trying due to this being the easier decision.