How exactly was it transferred to video? Because I notice low contrast that washes out detail in dark areas and it's interlaced. The tree in the first cap has a white line separating it from the background (edge enhancement, how would you get that from a film print?)
If the restore 24 gives a better result than anything previously (PAL vhs, laserdisc, sing-a-long dvd's) available, by all means release it even if it isn't as good as hoped. I've never seen the film but I want to get a copy soon. Who knows, someone else might be able to improve the quality further.