I live right by the Oak station. I walk or ride my bike to Oak, lightrail to RRCC. Walk or pedal up to the college, and I'm done. It's very convenient for somebody like me. When I want to go to Six Flags or downtown with my girlfriend? 2 minute drive to Oak station, and it takes us where we want to go.
It's not like they had a whole lot of choice. Most of the lightrail is built on top of the previous rail road, and Union station was improvised. You can't just run a lightrail along Colfax.
Also, Red Rocks has a ton of land right there across the street from the RRCC station. Just drop a little baby parking lot there if it's honestly needed so much, but I don't know why anybody would need to be dropped off there. That tiny walk is a breeze unless if you're late for class. The only people using that station are walking off the train, or walking onto it.