I'm probably speaking only for myself when I say that I don't like movies to look too realistic.
I prefer the appearance of a pristine (I hate dirt and scratches) 16mm print. The hazy glow, the softness, and the grain structure all help to provide an aesthetic I find pleasing.
Puggo GRANDE is too dirty for me (sorry Puggo!) to enjoy, but this sample frame from it demonstrates how I'd prefer to watch most movies.
Note: This isn't AR-corrected. Also, I uploaded it to imageshack.us so as to not kill Puggo's bandwidth.
Also, do realize that this isn't because of nostalgia. I'm 25, so I definitely wasn't around during the heyday of 16mm.