@Bill C -
Ugh. I was told we would allow customers to edit these back once we broke them. I really dislike the fact that we added this dev-ops capability in SP1, but we hard-coded these resolution states, breaking existing customer solutions. I have provided this feedback to the product team.
The best solution is to switch your process to leverage a different resolution state (the PG recommend using low numbers for customer resolution states apparently)
I am checking if there is a supportable way to modify these for customers who don't care about Dev-Ops/TFS integration, and why we saw fit to lock out editing them in the UI.
Bill - my friend Daniele referred me to this link for information how to unprotect these for editing: http://www.muscetta.com/2008/09/13/protecting-custom-resolution-state-in-opsmgr-2007/