100% complete cleanup, probably, means these sketchy accounts and shady addresses have all been deleted from the blockchain.
The very definition of a permissioned blockchain. People that run it decided your account is sketchy and your address is shady, so you're out. That is why some financial institutions love ETHF so much.
i don't understand why that isn't a huge red flag for users...
Well, because auditing, stock taking and efficiency process gains are a necessity for successful economic enterprises.
In terms of the logic:
Through the increased deletion of errors, crap and mistakes (malicious or accidental in origin) save finite resource within a network and these extra saved resources can be reallocated too increasing long value, has been proven to be a reliable source of greater prosperity for ventures spanning many areas of human activity in the long-run.
Consequently, the misallocation of node resources to processing an avalanche empty accounts created by malicious party's in a network attack would not be in the self-interests of Ethereums' investors and miners.
Seemed pretty a straightforward decision.