> "Fixing" that by marking our system as down or degraded whenever a dependent system was down led to the status indicator being not green regularly, causing us to unfairly develop a reputation as unreliable (most broken dependencies had limited blast radius).

This seems like an issue with the design of your status page. If the broken dependencies truly had a limited blast radius, that should've been able to be communicated in your indicators and statistics. If not, then the unreliable reputation was deserved, and all you did by removing the status page was hide it.