Well, they want to encourage grouping/server population, so it has to be very appealing vs soloing given the risk of groups being ganked by twinks (or by own group members).
I know red in the past had larger bonuses (applied to all xp) than what they have now, but the group bonus seems the best to me (although I've never grouped on red yet - so far 52.5 all solo, but I tend to afk a lot).
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