Guild Stealth Mode in Pugs

1

I understand the reason for Stealth Mode, but why is it preventing people who are not in the guild with stealth mode on from ranking? I just joined a pug and unbeknownst to me there were like 12 out 20 from the same guild. Why is the threshold so low? It should be only stealth if the whole raid is from the same guild or they should just be blanked and the non-guild players should be able to rank.