Take a look at this frame:
Looking at the references I have, and being conservative with saturation I would place this shot about here:
Bottom pic looks like teal mess. Sure, the colors could pop a little more on the screenshots from the last page, but I prefer them and they look pretty filmic to me. Sure, it’s not Technicolor but it’s easily the best how these have looked officially. That 2001 pic looks a little too over-processed color-wise.
The teal looks very unappealing, and the set pieces in both versions feel more like a play than an actual film. Best thing to do is to have a “modern” version that fixes the color grading to match the original versions instead of that unappealing teal and orange color filter used for 4K releases, cleaned-up visuals and picture quality (the noise and grain), improved puppets and sets (via modern-day CGI and other effects), etc. and can be seen as the definitive versions of the films, while realeasing the original versions as bonus discs for obvious preservation reasons.
That way, we can have both an artifact and a modern edition, so we wouldn’t be rewriting history at all.