That's hilarious. God bless the old Atari who wanted to sue the world. The irony now of course is that Atari no longer own Battlezone's IP. Rebellion managed to grab it when Atari went bankrupt in 2013.
I think that's an Irish thing (they tended to run these travelling fairs). Lots of superstitions around anything "green", being displayed in a negative light. Like a giant alien bug head maybe.
I recall similar superstitions in the world of car racing. A green NASCAR car is a big no-no.
I love how the makers of these cabinets filled in the creative blanks that the graphics on screen couldn't possibly do. This is an extreme example of that concept, but Atari were masters at it.
Sadly, it's the other way around now. Videogames are delivered with minimal packaging, or digital download only.