Man, you just never can tell when the interior of the Death Star is going to be blue and when it isn't. I'm still not sure why it is so inconsistent, but in my head I had it as being much bluer for that particular shot. That's really from a Technicolor print? What is it about the lighting that made it fluctuate so much on that point?
But yeah, I definitely agree that Star Wars is not meant to look remotely like a film produced in the present day. Such a look only undermines its style of cinematography, which belongs to a different era. Unlike other movies of the same time, nothing about it looks dated to me in any way, instead taking on a uniquely timeless quality. I suspect that when the current fad of 'teal and orange' colour timing has passed, modern films will look very dated indeed to future audiences.
Jaitea's adjustment of the dvd image shows that it is indeed possible to rescue the colours in the desert scene. Very good to know!