I think any solution you can get working is the right one. You could probably update the code you have and just add a "select status" option to the top of the list and update the javascript code. Adding another Dynamic Dropdown would work, but might actually be more complex. These days I don't use dynamic dropdowns. If I want a dynamic dropdown I use WebAssist Plugins and AJAX, but rewriting all of it might be overkill.
I'm probably going to remove the Dynamic Dropdowns extension and do a tutorial on how to do it with Plugins and AJAX at some point. It is more powerful, versatile, and loads faster.