You know, you can have dual-colored LEDs.
The idea behind the ring was to serve 2 purposes:
1. To show when it was booting up, and how many controllers were plugged into the 360.
2. To troubleshoot issues with the 360 in the case of an issue. Each quadrant meant a specific problem, if it was red. RROD was the 'Red Ring of Death', which was the display when 3 of the 4 quadrants were red - meaning your X360 was bricked.
Now, if your wanting the other answer as to why RROD actually happened to the 360, the simple answer is 'Cheap thermal paste on the GPU'. Got too hot, and came off. More development time would of solved it. Over time, it was fixed through a mixture of a GPU clamp, better thermal paste, lower wattage demands (thus cooler temperatures), and better ventilation system(s).
A Slim 360 is vastly cooler, temp-wise than the originals. I've owned 3 different generations of 360s, so I know this too well.