Reconstructing Grey!Harry tropes to actually make sense

Grey!Harry fics posit a "Grey" faction in between the Light and Dark, but this has obvious problems. In addition to being a poor fit for "both sides-ism," Canon "Dark" characters are either not so bad or are Grey themselves, and Dumbledore is either too naive and bleeding-heart to live, or secretly evil--or both.

But I think there's a way to save it if you think about what the factions are actually doing. Specifically, the Light is the dominant faction in the Ministry of Magic, and the Ministry is in many ways a police state. They were worse in the Fantastic Beasts movies, but they were no slouches in the books either:

• They're paranoid about the Statute of Secrecy. Even their emergency responders (Magical Accidents and Catastrophes) are tasked more with cleaning up the mess than saving people.
• They permanently incapacitate children by snapping their wands for comparatively minor childhood indiscretions.
• Many things that would be perfectly reasonable for wizards to own like flying carpets and enchanted tea sets are illegal as misuse of "muggle" artifacts, and they do an awful lot of raids to confiscate them.
• Everything about Azkaban.

For a reconstruction of Grey!Harry tropes, the Light consider themselves "enlightened." They are genuine advocates for muggles, genuine advocates for equality (at least among humans), and genuine opponents of the Dark Arts. But their methods are harsh and oppressive. Dumbledore is Greater-Good!Dumbledore. He rejected Grindelwald's ideology, but failed to understand how much he had internalized his way of thinking. He believes that upholding the status quo of strict laws under the Statute of Secrecy is "doing what is right instead of what is easy."

The Dark are every bit as bad as they are in canon. They're cruel and vicious reactionaries who want to go back to a (possibly imaginary) past "golden age" when they could put muggles in their "rightful place" beneath them, and the Dark Arts could be practiced with impunity. (Their name was imposed on them by the Light during the actual Enlightenment, but they had long since reclaimed it even by Grindelwald's time.)

In between are the "Grey"; the Grey consider themselves reformers. They're pro-muggle and muggle-born (if it's a Haphne fic, maybe Daphne reveals that she herself is a half-blood), but they also want the Ministry to end its draconian policies, believing there are less intrusive ways to maintain secrecy. And contrary to the both sides-ism of most Grey!Harry fics, they don't even have a position on the Dark Arts. Some of them are as vehemently opposed as Dumbledore, while others want the Ministry to back off those, too.

Many of the Light call the Grey "Dark" because they side with the Dark on repealing the allegedly "enlightened" Ministry policies. The Dark call the Grey whatever is convenient for them at the time. Many of the Grey don't particularly like their name, but they chose it to try to break from the existing paradigm.

When Harry begins espousing Grey political positions (maybe in response to what happened to Sirius?), it drives a deep wedge between him and the Weasleys because Arthur is literally an enforcer for the Light. It initially drives a wedge between him and Hermione, but she comes back around after researching how bad the Ministry is. And Dumbledore...appears to play nice. He's sympathetic, he debates Harry with rational arguments, and he respects their differences of opinion...but he has fewer qualms about manipulating Harry for the war effort, and he does pressure him to keep quiet about it until the war is over for morale reasons.