Please, please restore the full RED border to items that a character cannot use instead of the new Bottom-only coloring. In fact, change the whole color scheme, because this new one isn't very good at all. I suggest the following:

Cannot Use (due to minimum level, race, alignment requirement, whatever) Full RED border, preferably with a glyph over it.
Binds to Character on ACQUIRE: ORANGE
Binds to Character on EQUIP: YELLOW
Wonderous Craftsmanship: LIGHT BLUE/CYAN
Cursed: Color of Other Feature with a Skull over the image