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I don't think Lance should have swapped to the Red Lion.
TL;DR at the end.
Lance's connection to Blue was the first connection shown in the series, which makes it all the more meaningful, and it made no sense to the series own rules. Red is temperamental and difficult to control, which is why Keith was her paladin. I have defended Lance's piloting skills in a previous post, but he is not as good as Keith and does not suit the Red Lion. His affinity is water - as emphasised by the start of season 2. Red is aligned with water.
Plus, if he stayed in Blue he would have gotten a proper character arc by living by his own rules and standards and not in Keith's shadow. I know it was supposed to be symbolism - him accepting Keith as leader and not being selfish about it made him qualify as the right-hand man, but the others accepted him as well, despite ribbing Keith about it earlier.
If anyone should have gotten the role as the Red Paladin, it should have been Allura.
Allura as the Red Paladin would, not only make sense narratively, but would also seem right. Colour-wise, she's closer to Red's hue than Blue's, but honestly, I didn't really care about the colour match-up. What is important, is that it would seem like a much bigger deal than Lance accepting Keith as the leader. Lance hates Keith, but that's probably due to being constantly in his shadow and being compared to him, consistently reminded at the Garrison that he was only moved up because Keith was expelled.
Allura, however, has a deeper reason. (Lance's reason is still valid, btw, just not as big as Allura's). She hated Keith for a good portion of Season 2 because he is half-Galra. Obviously, to us, this is a shitty reason to hate someone. It's racism and the show doesn't handle this well. It doesn't handle a lot of stuff well, but whatever. She gives Keith the cold shoulder and Keith knows she hates him. He says so himself to Hunk and doesn't listen to his reassurances. Then again, Hunk was making jokes about something Keith was clearly sensitive about, so that may have had a hand in it too.
Now, I am not condoning her actions. She made Keith feel unwelcome in a team - a family - while he already has abandonment issues, (not that they knew that), and hated him for something he cannot control. Keith probably hated himself for being born. Both of them disregarded the fact that he is still a person with feeling and blood doesn't change that. Hunk too, as much as I love him, was also wrong in his 'Galra Keith' jokes, as if Keith was someone else entirely, when nothing changed apart from their knowledge.
However, what I am saying, is that Allura's reaction was, somewhat, believable and had a genuine reason - and a good one. The Galra Empire completely annihilated her species (as far as she's aware), betrayed the people she loved, and has monopolized entire planets and controlled them - forced them to work and even fight to the death for their entertainment. Apart from Ulaz, she hadn't a single good interaction with the Galra. One good person is not enough to change your opinion about entire races. I know people who are racist, proper racist, to their own race, no joke.
Allura's reaction was actually rather tame, especially compared to how extreme racism can be in the world, even now. She never rose a hand to Keith and kept it passive-aggressive. She gave him the cold shoulder and genuinely hated him, but she never hit him and she never deliberately sent him on a death mission. The Weblum mission was dangerous, but it was also a requirement and she didn't send him in alone. She may have refused to acknowledge his achievements, but she didn't blame him or accuse him of anything. It's likely that, when she saw him, all she saw was Galra. That being said, she wasn't a bad person, simply badly written. There are many people who hurt others for no reason - people who haven't been wronged in any way, but rate a community simply because they exist or they think they're lower than them or less human, which is wrong on so many levels. Allura, at least, had a good reason, though it should have been built on and written better.
In the end, Allura acknowledged her toxic attitude and apologised to Keith. This in and of itself does not make everything okay, but it's more than what Lance did, (virtually nothing except telling Keith that he has to be the leader). Allura knows she was wrong and sets out to make it right, and this development would have been solidified by her becoming the Red Paladin. Like, let's be honest. Lance does not treat Keith right and it's never explained why, in and outside of the show. He's the one antagonising Keith, even during their first proper meeting, and he's the only starting all the arguments, especially in season 2. Keith has been volatile too, I will admit, but he stops his behaviour in the second season. Lance is the one starting everything. Allura, however, stops her behaviour before it takes extreme lengths and becomes a better person and a better friend as a result. It's then that she calls Keith family for the first time, and becoming his right-hand would have shown how serious she was and how far they've come.
Seeing Allura, who, just the season prior, hated Keith's guts, accept Keith as her leader, the Black Paladin, become his right-hand, would have meant so much more. The symbolism goes even deeper. Red's first paladin was Altean and Black's was Galran. Need I say more? (No, but I will). Many of us were incredibly disappointed with the ending of Voltron, especially with Allura dying. The reason she died was to complete the circle, so to speak. The war against the Galra Empire truly started with the death of Allura's father, Alfor, and the entire species of Altea, and the war is finally ending with Allura and Honerva's death. That being said, it was just so insulting and pointless and nobody was happy. Instead of dying to complete the circle, Allura should have survived and broken the chain, for both herself and Red's own paladin tragedy. It was just a huge slap in the face for people who actually powered through seasons 7 and 8 and trusted the show to pull through and get its head together. I know that Shiro was supposed to get Black back, Keith goes back to Red and Allura controls the Atlas, but if that wasn't the plan, then Allura in Red would have made much more sense.
Additionally, the fight in that realm would have been more emotional if Allura was forced to fight her father and bring him back. Lance had no emotional attachment to Alfor, and I know that was the case with Hunk and Pidge, and Allura had attachment to all of the previous paladins, but still. Think about how heart wrenching it would have been for her to face her father, whom she loves dearly. he wouldn't have even recognised her and would have fought her with the intent to kill after his soul was trapped for 10,003 decapheobs/years. (I know they're different, but Allura says 10,000 years even when she didn't know what years were, so I didn't know if that was a mistake or not). Allura would not have been able to fight as well as she did against the Blue Paladin of Old.
Let's not forget that Allura was the one to convince Keith to take up the role of the Black Paladin. Of all the paladins, it was Allura who knew what to say; who knew why Keith was acting the way he was in season 3. Lance saw Shiro as his idol, Pidge as a legend, and Hunk as a mentor. Keith's relationship with Shiro is so much deeper than that. Shiro wasn't the youngest man to be sent into space. He wasn't someone to look up to. He didn't go to the Garrison because Shiro went there - he went there because Shiro convinced him. He doesn't see Takashi Shirogane, piloting prodigy, idol for all. He sees Takashi Shirogane, his best friend and brother, a man he can trust and how can trust him. Nobody else realises how deep this goes. Nobody but Allura. She's the only one to see how much Shiro meant to Keith. She's the one to call him 'irreplaceable' and she's the only one even by the end of the series, who isn't Keith, who has sacrificed something for him. Allura gave up her freedom for him by allowing herself to be captured, and then she gave up the crystal for his arm. Keith has saved Shiro many times, even his clone, and literally gave up his place in Voltron for Shiro. Allura trusts Keith and Keith allowed himself to trust her. She understands his pain when nobody else saw it.
Finally, Allura would have been inheriting Red from her father. Coran has explicitly said that Allura wanted to pilot Red due to her father piloting her. The Lions clearly have some amount of sentience, Red and Black especially. Black only opens themselves to Keith because he of Shiro. The first time, it's to save Shiro from death. The second, it's because Shiro wanted him to become the leader. Red only accepted Keith because he proved himself to her and has saved Keith many times while he's floating in space. She's described as temperamental, which suggest levels of sentience. Obviously, Red would have more of a soft spot for Allura, the daughter of her previous paladin, than she would for Lance, whom she only opens up to well into season 3 and is someone antagonised and even bullied Keith, her current/transitioning paladin. Allura also shows that she's fiercely loyal and is willing to give one up for the team.
Allura has sacrificed her only contact to her father, she has allowed herself to be kidnapped for Shiro, she has constantly exhausted herself for both her friends and strangers such as the Balmerans, she has given up the crystal in her crown for Shiro without hesitation, and she even dated Lance despite not showing any form of romantic attraction previously. (That last one was joke, obviously).
TL;DR - Lance has literally no reason to have become the Red Paladin outside of a rubbish character arc, and Allura has all the reasons. It would have marked an excellent character arc mid-point and would have set up a great ending, if handled well.
I have nothing but respect for the writers of Voltron for their work, especially after all the intervening of their higher-ups that caused many issues, especially regarding Shiro, Keith, Lance and Allura, who were all robbed of excellent character arcs. That doesn't mean I can't hate what came of it.