That is absolutely correct. Westfield want to kid you into thinking the red card won't work outside Westfield so that you will pay more for the card that apparently does. However they both work in the same way.
Yes and no.
I have tested cards from various mall operators, and they all say accepted inside the mall, but I have used them everywhere random. Well, except there is 1 sushi place near my work at Circular Quay, plus somewhere I forgot, where the EFTPOS terminal actually decline the card.
I am unable to see the pattern at this stage.