Not to mention that 35mm prints have this organic look that makes the movie feel alive.
I for one don’t mind the generational loss that results from creating a film print, because another bonus is that visual effects, whether traditional optical effects or CGI, blend a lot better with the live action elements of the image as a result.
You are right. Generational loss GIVES film it’s aesthetic beauty, including the heightened grain and higher contrast, richer colours. We are not supposed to see the negative or the interpositive. Grain and the inherent photochemical softness hides the imperfections of CGI and blends the image better with the rest of the live action footage. In digitally shot movies, there’s no grain and the image is too sharp. It fails to hide the fakery of the CG.