In my opinion, that does not seem so good.

I wrote (before the thread went off topic) an far simpler idea, with a similar effect. (With the exeption that interference will make it blink)

Still, this shows that the LED-controlling FS1 is in failsafe mode. But there could be a lot of reasons for that, i.e. the connection to the reciever is broken. What you want is a LED showing that the failsafe device that actually controls the motors is in failsafe mode.