Eh, I actually like "punchy" saturated colors for that kind of thing. Reminds me of older shooters like Quake and Unreal Tournament. It's also more consistent with team colors on other UI elements and on soldiers.
IMO you should make "# players" test juxt a bit bigger and maybe brighter too. It's a bit difficult to read on smaller resolutions, and this isn't even 640x480.
Selected team could be shown like this:
