Why? I can understand cutting Chinese restaurants some slack because of a possible language barrier with owners, but what's wrong with ones who are fluent in English? Or have the resources to hire a good agency to put together their menu and proofread it?
Not GP but I have the same red flag system. If it's perfect english (or whatever native language you use) it's more likely that not the restaurant is run by a native, not a real chinese family. So warning flags, most likely not the best the chinese kitchen can deliver :-)
It's a way to find family-owned restaurants. The other ones are "good Asian restaurants have bad service" (though I don't think that's true anymore) and "good restaurants will never be expensive".
The last one is a problem because real family restaurants do want to raise prices/be more upscale too, but none of their customers will let them because they expect banh mi to be $3.
Additionally, I have it in my head that not bothering to fix menus shows a certain admirable pragmatism. "Frind pok" is not correct but it is correct enough.