Personally, I don’t think the lore specifics matter for crap. I’m sure there are dozens of ways you can rationalize any interpretation, regardless of what Palpy’s “true” appearance is.
So, for me, I think Cap has a point in that the wrinkly clones are more intelligible to the audience. I think it might be interesting to see a more gradual progression; like, they start young in the vat, and then by the time we get to the sentient one, he’s all pruney. But that just raises the question of why he wouldn’t use one of the fresh, young clones instead of the blind, monster-face one.
I guess I lean toward keeping it as-is with the shriveled vat Clones.