"Handicapped" Parking Permits

So, I'm behind on calling B.S. when it needs to be called. The topic today is one that continues to piss me off regardless of what state, city, or shopping area I'm in.
Handicapped Parking Permits.....
First, it was my understanding that people with physical disabilities no longer wished to be called "handicapped". The preferred term used to be "physical limitations" or "physical disabilities". And yet these same individuals that will become enraged at the mere inference that they are anything less than a "able-bodied" person, proudly display the blue tag from their rear view mirror in order to get that coveted parking spot at Wal Mart.

Second, would it not be a bit more equitable to establish a color-coded system which determines your level of "handicap"? For instance, if you are confined to a wheel chair then you get a blue tag. The blue tag gets you closest to the front door of a given location.
If you are a wounded Veteran, you get a red tag which has no benefits in regard to parking, because you're a badasss anyway and don't need special treatment; even though you've earned it.
A green tag identifies you as someone who is in their current physical condition because you have no willpower or self-control whatsoever. The green tag will allow you to park closer to the door than what you would on a normal Saturday afternoon at Wal Mart, but no better than mid-way down a given aisle.

Thirdly, the application for these tags is nearly comical. I have personally witnessed the process and how simple it was to get one. I don't personally have one, nor have I ever applied for one, but I know people who have and do.
Is there a limit to what the definition of "handicapped" is in regard to these tags? Because from what I can tell the only benefit is parking closer to the door. I can't begin to recount how many people, with the Blue tag in full view, for all to see, climbed out of their vehicle and strolled into a place pf business. So, if you're walking, how the hell did you get the tag? Shouldn't there be a limp or something?

Just thinking out loud here folks.....