I agree 100%. But I think most reds just cycle, like you said. I have noticed more and more people buying back their heads though. Six months ago it felt like every time I went to offer a bounty the player was already offline. Now it's about 50/50
I think though that a lot of people will opt for longer stat loss with no effort (being logged out) over having to retrain skills, even if it's faster. With 3 accounts of 7 (?) characters.... You can cycle through a lot of reds before you're out of the fight for any substantial period of time, if you've built enough murderers (which most dedicated reds have)
Temp statloss will now require you to macro it off in-game.