Green-i: Some small percentage of customers are affected, but most of you have nothing to worry about. So if you are a customer having problems and see this notice, you are re-assured that you are not crazy. And if you are NOT seeing problems, you probably won't. Amazon has not always been the best at posting this information quickly enough, hence a commitment to be better at messaging for those customers
Yellow: A significant amount of customers is affected. Potentially serious problems, and if you haven't seen them yet, don't be surprised if you will. Start monitoring your service health and preparing for a failover to another region.
Red: FUBAR. Happens rarely, but when it does you'll probably know even before your application alarms - you'll notice when half the internet shuts down.