I don't use Recent changes, so I'm speaking just from the perspective of using this new functionality on my Watchlist, though the functionality I'm going to suggest would be equally useful for Recent changes.
I'm not going to switch between a bunch of different filtering options every time I visit my Watchlist. I just want one stable view that I use almost all the time. There are a ton of new options that I'd like to use, but since I'm not going to turn a bunch of different options on and off every time, I need to use them as highlighting, not exclusion filters. However, there are only 5 preset colors that can be used for highlighting (and the ability for these 5 colors to be mixed across filter categories does not solve the problem).
There needs to be a different (or additional) way for all these useful new items to be marked. To the left of the edits, where the colored bullets now appear, I'd like to see "Q:1" through "Q:4" (possibly outlined with a box), corresponding to "Contribution quality prediction: Very likely good" through "Very likely have problems". I'd like the Q:num (and border box, if any) to be colored as per my selected highlight colors. If something were Q:4, there wouldn't be additional subset indicators for Q:3 and Q:2 — that's an implementation detail, not a useful UI feature.
Then, if enabled, next to the Q indicator, there'd be "I:1" through "I:4" for the User intent predictions, again colored by my selected highlight colors.
Then, if enabled, next to the I indicator, there'd be "X:e", "X:l", "X:n", and "X:u", for (eXperience:) Experienced, Learners, Newcomers, and Unregistered, again colored as selected ("Registered" would not be useful except as a Boolean alternative to the first three categories).
For the highlighting of the text itself, what would be most useful to me would be if that instead of doing confusing color-mixing, the text were highlighted with the single color from the "worst" of those three categories. So if I had green, yellow, orange, and red selected for each of those (and probably a single color picker across all three would make sense if you're not going to offer a larger palette and/or arbitrary RGB picker), a Q:1 I:1 X:e edit's text would be in green, but Q:1 I:1 X:u would be in red.
Of course, unregistered users' edits always having their text in red, overriding quality and good faith predictions, wouldn't be very useful, so what I'd like to see would be a checkbox on each of the those three categories as to whether them having the worst value would override the text color or not. I personally would turn off the text effect for X, so Q:1 I:1 X:u would be green, but Q:2 I:1 X:n would be yellow. Highlight colors would still be applied to the X:val text (and outline box, if any), however.