No idea why this is being downvoted. If a single AZ goes down and your app goes with it, then you haven't deployed your app in line with Amazon guidelines.
Maybe because this has nothing to do with availability zones and it's specifically to do with AWS mis/under-reporting status.
What AZ were they supposed to failover to? Another one reporting green?
The dashboard shows region health, not AZ health. You don't even need cross-region deployment, just multi-AZ in the same region. The issue was isolated to a single AZ, not an entire region.
This is a strawman. We're not demanding red, but seeking yellow or orange or some other indicator that captures the impact. Absolutely not green.