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Isn't that how it was in Factions towards the end? There was a reason for it but I don't quite remember, I think for the exact opposite reason you're asking, because people weren't sure who was orange when they were red or a criminal (Because the Faction titles weren't obvious enough I guess)
Well I didn't really play after 2009, so if it was changed for Factions that would have been annoying as well. Criminal flagging should over-ride orange, and murderer should over-ride everything. You see VvV next to everyone's name so you know who they are.