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If that was the case, your "issues" wouldn't even fucking apply, because those who want to flag up against reds can already do so by choosing BH as one of their social organizations.
But no, anyone cannot in fact just become a BH out of nowhere.
https://ashesofcreation.wiki/Bounty_hunters
So you're not only suggesting to change the corruption system, but pretty much completely make the BH system pointless because everyone would just punish reds instead of only those who really want to help people out in their node. In a way you're literally making red's lives harder with this suggestion.
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I'm not overthinking it. I've lived this, because I have been a high lvl Red in the lowbie location before and had several lowbies trying to fight me and completely losing. Except L2's system worked in their favor and I got huge amounts of corruption because of my actions. And when they did manage to kill me, they looted items from me because I had a ton of corruption on me, which was, yet again, making their life better.
And I've been on the other side of that situation as well and have benefited from it myself. I've made a ton of money for my lvl multiple times exactly because some dumb red decided to kill some lowbies a few too many times.
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The lore explains why the greens can fight against red w/o flagging up. So from the system's pov the red is in fact an "npc".