The badge anamolies I was referring to before, in my initial post, were in cases of people whose settings were in effect before the change. For example, in my group there are now members marked F (with no R) and some marked F R. Post-change, everyone who is F should also automatically be R. That is what first got me wondering about whether the change was going to work retroactively.
Furthermore, I just noticed that although my email delivery in my subscription page in that group is marked as Individual Email, I am listed under No Email in the member list (I also happen to be a mod in that group so I just checked that).
My guess is that the convoluted mixing up of delivery method (specifically, keeping "no email" and "special notices only" as delivery methods, when they are not - they are message filters, i.e., message selection options) and including them in the algorithm for setting the message selection is the problem. I hope that this can be reworked to implement the original suggestion - which did get lots of positive response here - wherein delivery methods vs message selection are clearly separate, their settings don't depend on each other, and no-email and special-notice-only are not considered delivery methods.
Messages are the sole opinion of the author, especially the fishy ones.