Yup, I’m one of the people who think the current blood labeling system is inaccurate. Like I believe you were saying, if a magical child has four magical grandparents, but their two parents are squibs, in my mind they should be halfbood, or maybe a unique title, but according to HP fandom they’re muggleborn.
Then for me another status I don’t agree with is if a muggle and a magical person have a child and that child isn’t magical they are probably just a muggle like their non magical parent, but again according to HP fandom any non magical person born to at least one magical person is a squib. To me a squib makes more sense if they came from two magical parents and likely more magical ancestors up the family tree but they themselves have no magic. A non magical child who has one muggle parent to be just sounds like another muggle, not a squib.