Sometimes something simpler than the up and down graph would be nice. Maybe if the settings/chart/config page showed the same sort of bar as the mini-chart on the watchface?
Like this, possibly?
The dark blue is deep sleep - notice that is where the movement trace is below the bottom division, the mid blue is light sleep - the movement trace is between the bottom division and the next one up, light blue is restless sleep - the movement is above the top division.
Mid grey is where no movement was recorded, and the light grey (also shown as a vertical bar on the graph) is where I pressed ignore on the watch menu.
Inspired by the sun streaming in through the window early (very very early) in the morning, I wondered what effect the sun and moon have on my sleep patterns. So, just below the sleep bar I've included some sun and moon lines:
The sun bar shows the sky brightening towards sunrise. Notice that this pretty closely matches the time I woke up and pressed ignore giving the grey line on the chart.
The moon bar shows the phase of the moon and then moon rise and set points. Note when the moon is new this bar is completely black.