It was filmed in 2.35.1, and even though it was authored in a letterbox format on the GOUT, you would assume the AR would be correct. Thats weird that is was still stretched too much.
Avoiding stretching out the picture is a must. So if 1280x544 offers the correct AR that keeps everyone from having stretchy faces, then I would go with that.
Damn non-anamorphic DVDs, makes everything more difficult :P
Random question. Are you doing anything with the audio? Or are you just going to leave it? I know many people voiced complaints about the audio, but I think it sounds fine. I think the original theatrical audio on the 70mm print was 6 track stereo audio, which the GOUT is more faithful too I believe.