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hmmm... think you're misinformed there on the explosive capabilities of neon. If you check a high school chemistry text, I think you'll find that neon falls into the class of a noble gas.
Think about it, if it was explosive, exposing it to an electrode to make it glow probably wouldn't be a good thing. :-)
Suspect that the reason it's illegal is the same as for changing the color of your tail lights, etc. The neon glow is visible from all angles, so it appears as a colored light whether you looking at the front, back or side of the car. So, if your state says that your green neon is illegal, they're probably saying so because any light visible from the rear must be red or amber (for example).
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