The article is about AI upscaling "True Lies", which was shot on 35mm film. 35mm provides a very high level of detail -- about equivalent in resolution to a 4k digital picture. We're not talking about getting an old VHS tape to look decent on your TV here.
The differences in quality between 35mm film and 4k digital are really more qualitative than quantitative, such as dynamic range and film grain. But things like lighting and dynamic range are just as much directorial choices as script, story, any other aspect of a film. It's a visual medium, after all.
Is the goal to have all old movies have the same, flatly lit streaming "content" look that's so ubiquitous today?
I think the argument against "isn’t there space for people who just want to see the story but experience it with modern levels of image quality" is that such a space is a-historical -- It's a space for someone that doesn't want to engage with the fact that things were different in the (not even very distant) past, and (at the risk of sounding a bit pretentious) it breeds an intellectually lazy and small-minded culture.
It's a widespread issue with the emulation of old games that have been made for really low resolution/different ratio screens and slow hardware, especially early 3D/2D combinations like Final Fantasy, and those that relied on janky analog video outputs to draw their effects.
Another thing that's plainly obvious in TNG's remastered version is all the black cardboard placed over the display screens in the back of the bridge, to block glare from lights. In SDTV, this wasn't noticeable because the quality was so bad.
'Film buff' responses are common to every major change in technology and society. People highly invested in the old way have an understandably conservative reaction - wait! slow down! what happens to all these old values?! They look for and find flaws, confirming their fears (a confirmation bias) and supporting their argument to slow down.
They are right that some values will be lost; hopefully much more will be gained. The existance of flaws in beta / first generation applications doesn't correlate with future success.
Also, they unknowingly mislead by reasoning with what is also an old sales disinformation technique: List the positive values of Option A, compare them to Option B; B, being a different product, inevitably will differ from A's design and strengths and lose the comparison. The comparision misleads us because it omits B's concept and its strengths that are superior to A's; with a new technology, those strengths aren't even all known - in this case, we can see B's far superior resolution and cleaner image. We also don't know what creative, artistic uses people will come up with - for example, maybe it can be used to blend two very different kinds of films together.
These things happen with political and social issues too. It's just another way of saying the second step in what every innovator experiences: 'first they laugh at you, then they tell you it violates the orthodoxy, then they say they knew it all along'.
Maybe ... just maybe ... Step 2 is where it stops sometimes because it was a bad idea and did make the films worse.