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Yes,
"Красный угол" would be equivalent to "the place of honor".
As Ozhegov's Explanatory Dictionary of the Russian Language states, "красный угол" was a special corner in older times in a peasant's hut, across from the furnace/oven, with a table in it and icons on the wall around it.
Another interesting example of using "красный" in the meaning of "beautiful, nice, bright, good" is a saying "долг платежом красен" (a debt is good when it is paid off).