There has been a VERY common complaint for years now that people quit trying to socialize when all their friends are on Orange status. The thing is that Orange status is the safest option when you want to curate who joins and who doesn't. But there is no middle ground between Orange and Green.
The problem, IMO, is that Blue basically already does what Green does. Green should tell people what world I'm in, but still require an invite request to join. It should tell people I'm open to hanging out, but still have the ability to curate who joins like Orange does. What is the point of Blue when Green already just leaves the door open for anyone to join at any time?
Blue should be the only option where you don't care who joins and lets people in without an invite request. Green should let people know where you are, but require an invite to join. Orange and Red can stay as they are.