It is certainly a missing feature. Something I'd like us to look at, but will require quite a lot of work to achieve as the current catalog only lists the current version.
There's another question on nodes that change their minimum node.js version or node-red version support. Right now, the Palette Manager doesn't know about that information, so will offer to install a node that isn't compatible with your current node.js version.
If we're going to do the work to extend the catalogue format to include multiple versions, it should also include any additional version requirements so the palette manager can offer the latest compatible node version.
