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I also have a 4% to 5% CTR. I wrote support a long time ago asking why the term was red lined and they replied that I was "not to worry about it" as they also considered CTR before deleting keywords.
Just out of curiosity have they deleted any keywords for anyone because of "Low Clickrate" in the last year or so?
Certainly in our niche the number of advertisers has fallen over that time period and I suspect that they haven't been deleting anything.
If you have 1 bar, then you know you could be doing a lot better.
If you have 5 bars, then you're doing well.
I've seen keywords removed for low click index in the past month, so I'm sure it's still part of their algo.
I have noticed that sometimes when one submits/resubmits listings they may not show for upto 24 hours in the editorial que - so don't assume because you don't see them there the resubmission didn't go through.