That is the right idea, but we have to deal with the issue that the Release Type field has two different types of options. Release status and a release sub-type.
Official vs Unofficial (in context of the platform) are one thing.
Demo can be either
Unreleased but official (for protos) can also be Official and Demo
Unofficial can be demo
Homebrew can only exist in Digital categories, and does exist in limited fashion in Accessories and Arcade sections. It does not really exist for physical games.
Release Date upcoming is largely useless if for a few reasons. First is that very few people use it when making an entry. And most of the people that do use it, do not come back and edit the entry when a thing comes out. Ideally this shouldn't even be present, and we should just automatically set a label of released vs upcoming based on the release date entered in the entry.
So either Release Type will come back for Digital categories or a new function will be implemented to otherwise handle it. The current implementation is incomplete and should be reverted until we can figure out the proper way to handle it.