At the very least, the dots at long range should be the base color of the plane that it is reprsenting
I.e..
Green dots for C-47, P-51B, P-47D-11/25, etc.
Blue bots for F6F, F4U, TBM, etc.
Gray gots for P-51D, B-17G, P-38L, etc.
I think it would be nice to have them fade in from the background color, but I think the game engine wouldn't be able to handle it, as it would have to know the exact angle you see the contact from and then know if it was against the sky, clouds, or ground. If against the ground, I don't think this would be possible, as the engine doesn't take into account the terrain textures that are totally seprate.