@ Laserdisc Master
While I would agree an upscaled "stair effect" is undesirable, I do not agree the lines should be smooth at the near pixel level. At this level, much of the details and structure are created by subtle differences in individual pixels creating the perception of detail from a distance. The eyebrows for example are supposed to be pixelated, because the actual hairs themselves are at a subpixel level. By forcing them to be smooth at the super pixel level, they now seem unrealistically thick. The same is actually also true for the soldiers hair.
It's actually interesting to compare both methods to the simple upscale.
Avisynth Spline64Resize vs MagicUpSR5 + MagiClean2:
http://screenshotcomparison.com/comparison/124619
Avisynth Spline64Resize vs super resolution v7:
http://screenshotcomparison.com/comparison/123815
While super resolution v7 simply adds detail, MagicUpSR5 & MagiClean2 alterations are less subtle, enhancing details more strongly at the super pixel level, but reducing detail at the pixel level.
The problem with removing the GOUT "grain" is that the detail at this level is also removed, and obviously not restored by adding a realistic grain plate. So I would agree it's better to have a good replacement than a bad reinterpretation, but not at the cost of what to me is more important, namely what is behind the grain.