Lightsabers do look nicer, even if that means looking similar to the bluray in this instance. The artifacts you're talking about are the sort of 'bubbles' around the lightsabers in 1.0?
I like the background blues, and the orange "glow" is a better compromise between the bright 1.0 and muted bluray. I don't know how things are "supposed" to look, and I guess that is a complicated question. But do you think Luke's face is a bit too red in some of the closeups? (~16-30 seconds in)