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The interesting question is, could it work the other way? Light up ones that aren't on in red. Light up ones that haven't sent data recently in yellow. I'm not sure what is ideal but the question might be is it more important to indicate success/normal or failure/error?

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Who uses the indicator lights? - people looking behind a computer or at switchgear. They aren't regular users, they understand how networks operate and what the green/yellow lights mean. They're typically debugging a problem, for which you want the truest indication of what's happening on the wire.

For regular users who just care about working internet, you can notify the user of connection failure where they look - the screen.

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