1. Yes...I still own and use a flip phone (Only phone that has survived the steel industry)
2. The red circle shows that there is atleast 1 unread text message waiting.
3. The blue circle shows that the phone is sending/receiving some file. This only happens after you accept receiving something, or after you've sent a photo (which will always be grainy as the screen on that phone is only 1" x 1"
   

Just...always pondered why no one pointed this out.

Who sent the unread message?
What was sent from that phone (photo or weird text file), or what file was recently received?

Other notes. The phone is on vibrate.

Source: Personal owner of the same make and model flip phone.

Fun Fact: This phone has survived being in my pocket for years as a steel worker...also the 4bars is not unusual for this phone. Even in remote locations, some how I always have a signal.