Quite right. It's the knee-jerk reaction of the Blu-ray age. People simply have no idea what a large-format image should look like. Funny Face, for non-optical outdoor shots should have almost nothing but the finest of grain. Add to that the heavy pancake make-up of the day, and the automatic reaction is "DNR." Where Paramount did seem to do some clean-up work was on the opticals and what they did doesn't bother me all that much. But the rest of the image looks very pleasing, and there's quite a lot of detail.
One might also say that the knee-jerk reaction of the Blu-ray age is to defend almost every transfer as long as it is looking better than the DVD and to defend even the most blatant noise/grain reduction or manipulation by saying that "back in the days they used that clayface makeup". There are various examples out of movies shot at 8-perf with or without an anamorphic attachment that have been treated right and they do NOT look like Funny Face or Zulu, examples would be: Il Gattopardo (the new version), King of Kings, To Catch a Thief, White Christmas, The Ten Commandments, The Big Country, Circus World. In those movies they even left off the pancake makeups off the buildings, vegetation and other surfaces that all seem to have gotten a more or less generous layer of makeup for Funny Face and Zulu