EDIT: I noticed what looked like blended frames too, but I'm pretty sure it's from when they originally photographed the cells. You can see localized blurring, but sometimes what looks like shadows of a cell buckling and such. In the 2 seconds I worked with any blurring was present in both releases not just the new one.
In fact the restoration fixes some rotation in the cells that is present in the original release.

It's not a matter that the new release is GOOD, it's a matter that the last release was so BAD.

I compared the two and there is no way I would prefer the picture of the old letterboxed, artifact ridden edition.
I still hope for a better release in the future, but since this is what the restoration looks like, expect it to look this bad on Blu-Ray.

And yes, the knees were intact in the featurette, but I believe it was letterboxed (and possibly from the unrestored original release). Funny thing is I never checked before I did the edit. (I'm hoping it wasn't restored or I'll feel like an idiot.)

Edit:

Yes the featurette is letterboxed. But the color timing and framing (there was different cropping in the 2 versions) indicate it is from the restored source AND before they removed the knees. The downside is quality.

Featurette Screenshot:

http://img232.imageshack.us/img232/1381/featuretterm3.jpg

Dr. M's Restored Theatrical Edition:

http://img507.imageshack.us/img507/2884/restoredjr4.jpg

The manual correction might have been more work, but the quality difference was worth it. Even if it is literally 2 seconds of film.