Badly done digital is not acceptable.That gets to the crux of the issue. Who wants to supplant badly done 35mm with badly done digital? At least with 35mm, there is the possibility of better presentations if one goes back to early generation elements, but if digital image capture or restoration is done at resolutions and bit depths that are supposed to be competetive with current low standards for mass-produced 35mm prints and projections, then that's as good as it will get.
The reality is that standards for typical theatrical presentation are quite low, which makes not-so-hot digital projection look pretty good by comparison. In the world of filmmaking and film restoration, however, one hopes that the standards (digital and analog) remain much higher even if the work will eventually be "downconverted". This at least allows for the possibility of high-quality presentations with a little care and ability.
Regards,