The worst part is that it's not consistent.
First, red was already used for disconnects. Reusing it for something else is confusing.
Second, some of the names are grey. At first I thought this was people who'd left the lobby, but I keep seeing people leave the lobby (the yellow "left the room" text appears), yet they remain red or blue.
Aside from being buggy, the red part was poorly thought through.
More importantly, I always read the patch notes, and I didn't notice any explanation. I assume it was there, but I missed it among everything else...but something like this deserved to be given special attention, maybe its own article in main client area and patch screen.
But Riot has a long history of failing to understand just how important the client interface is. There are still absurd bugs I've been waiting to see fixed since the 2nd season, like how you can't shop for runes, switch to your rune pages to see what else you need, and then go back to the same place in the shop. It STARTS at the same place, but then resets. Just removing the reset would take seconds (I'm a programmer), yet it's four seasons later and they haven't addressed that.