Thankfully, tools like you've discovered address this behaviour and add a lot of other useful window management features anyway.
It seems like the Option+Click on the streetlight is kind of like a toggle of the last two previous sizes, but not always - sometimes it stretches to the top, sometimes it doesn't do anything.
I've been a dedicated OS X user since 10.3 - and, despite spending 15-20 minutes at a stretch every year or so (such as tonight) - I've never really understood what the green button is supposed to do. I kind of find it amazing that such a horribly inconsistent user interface control has persisted for 15+ years.
But yet - Magnet (much like Spectacle before it) does exactly what I want. Ctrl+Option+Enter = Maximize window (which is exactly what I bet 99% of people want the Green Button to do)