PROBLEMS:
First, I found the yellow 'light damage' color to be too similar to the orange 'moderate damage' color. It is difficult to see what the difference is at times (compare CT to Arms in image below). The difference in color is difficult to distinguish quickly.
Second, I think the display does not provide enough damage information for your own mech. I personally kind of like the vague readout for enemy mechs. I don't think sensors should be very precise unless they are installed in your own mech. In your own mech though, you should have a very accurate understanding of the damage your mech has taken, more-so than 3 different color levels (each varying by 33%).
SOLUTION:
First, change the yellow to be more distinguishable from the orange. This is pretty minor, but I think it can make a big difference.
Second, Instead of just changing the color of the component that is damaged, slowly fill in the component with color as damage is received. This way, you get a color for a quick indicator (like we have today) and a percentage of damage to the component.
![Posted Image](http://blakekl.webege.com/mwo/dmgConcept1.png)
Let me clarify that this would only be done for indicator in the lower-left for the player's OWN mech. Aside from the color change, I think the upper-right indicator should remain unchanged.
There was a similar suggestion made by Lunoe that I got this idea from. I posted my idea in that topic, but the more I thought about it the more I liked it and decided to create it's own poll. Full credit to Lunoe for inspiring me though. His thread can be found here:
http://mwomercs.com/...damage-readout/