SEO Smart Links plugin issue

I have a question about SEO Smart Links’ behavior in terms of automatically linking to tag archives. I asked about this at the plugin homepage where I was asked to copy it to the WordPress forum — I wasn’t sure if I was supposed to do so to the author’s own forum on that website, or here at the main WP support forum, so I’m covering my bases by posting at both. Here’s an example of what’s going on:

If there was a tag “red” and also a tag “red balloon” and tag “red house,” the plugin seems to only pick up the reference to the word “red,” and so when “red balloon” or “red house” appear in the post body, only the word “red” is highlighted with a link to the “red” tag archive.

That would be fine and appropriate in a case where the post said something like “red is a color” and there was no “red is a color” tag. But when there’s more “detailed” tags like “red balloon” and “red house,” I’d hope that this would take priority for the automatic linking.

Is the plugin’s logic here purposeful, or is this just something not considered? How easy would it be to have the plugin give priority to tags like “red balloon” and then only later to “red”, either as default functionality or as an option?