I think the objection is not "old installers shouldn't be elevated" but that making the OS decide this based on the filename of the EXE is a disappointingly kludgey (but sadly unsurprising) way to do the job.
One alternative might be to have a security framework that offered the UAC prompt when a program actually attempted to do something that required elevation. I had thought that was the way UAC actually worked.
I wouldn't be surprised, given all the details, to learn that this "check the filename" approach really was the most sensible and appropriate thing to do at the time. We could call it a matter of "path dependency" if we're feeling charitable or a matter of "painting oneself into a corner" if we're not.
What I find so fascinating and irritating at the same time, every time I hear about some bit of Windows internals like this, is that MS seems to need an exit from a corner they've painted themselves into all the time.