That's the way it is on our Rez, Link. The LEO doesn't pay attention to those decorative lights. It's festive, and not hurting a thing. I've seen the blue, red, or any other color on, and I've seen the LEO blue lights flashing... and there's DEFINITELY a huge difference in the two. No mixing them up.
Now, we do have some of those that like to use their "headlights" (I know they are docking lights) to navigate after dark. I don't get it, though. I know they aren't supposed to be used, but to add to that, they aren't even useful unless you are creeping through a canal, and there is something to reflect the light off of. I've turned on mine just to see what the difference is from the captain chair, and you can't see a bit better with them on.