I cannot reproduce your error on my computer. When set to display applications in the order they were opened and docked in the lower right hand corner of my screen, application switcher always shows the currently active application correctly. It does not, however, in any view, accurately show which applications are hidden (that is, sometimes the hide others command works, but app switcher isn't updated). The icons on app switcher are three state: greyed (hidden) normal (not hidden but not frontmost) and depressed/selected (frontmost).
I am using the large icons, docked, with no text.