the bluing around the O2 Sensor is because the sensor holds the heat there. Any of them will do that.
As for running a straight pipe, it won't harm anything but ears and possibly the local constabulary, may take a crack at your wallet.
To say you can't tune for a straight pip is total BS. Motorcycles for decades were tuned with straight pipes. You can do a lot with them With a single cylinder engine, your options aren't so great. Length and diameter are the only options! If you want top end power a short pipe works, If you want low end torque a long pipe is better. They both make a lot of noise. Neither will blow up your engine of screw up your valves! The engine will run with no pipe and get you there. Very loud and less power then a pipe will get you. Look at WWII fighter planes. hey had very short stacks. Premid 50s Formula One cars, the same. Early 2 stroke scramblers ('50s and'60s)had a very short megaphone that ended right under the crankcase. Then expansion chambers came along and squelched the Meggies. Still no muffler. Those things were loud! Caused the demise of many a good race track!
As for your plight, I liked the EFI mufflers. Not too loud, but sounded great! Never ruffled a cop's feathers. And no problems with pieces falling off, as opposed to some of the other offerings out there. They will definitely mount on a B5. The GoldStar is nice, just the muffler, use your own head pipe. They are a bit pricey, though.
Bare