Lowry gets around the issue of "removing detail" though, because you are right, the grain is the image, normal grain reduction like DNR isn't actually getting rid of the grain it just softens the image until you can no longer tell the grain is still there; DNR is more sophisticated than simply throwing the image slightly out of focus but thats the concept in a nutshell. Lowry gets around this issue by getting rid of the dirt/grain, and of course the image information/detail with it, but then digitally simulating the original information/detail, this time without the grain, in effect removing the "artifacts" but without any apparent loss in detail/information. Thats why Citizen Kane looks awesome and sharp, yet has very little grain--the grain is gone but the detail/image information is intact.

Thats the whole concept behind the intended usage of Lowry--to remove dirt and foreign artifacts. Its basically a very advanced alternative to running the film through a cleaning bath, it removes the "artifact", thus there is a digital "hole" in the film if you like to think of it that way--like someone hole-punched the dirt out--and then it fills in the "hole" by simulating what would actually be there. In effect, Lowry simulates the image rather than scrubbing the negative to reveal the detail underneath, so in this way it scan actually "scrub" out grain and simulate a clean image if that is the effect so desired.