zganie - I
knew once I said unanimous someone would show up with a different opinion! And you supplied the perfect word for #3 - muddy. Couldn't agree with you more about keeping a restoration to the original. In this case all that is available is a tiny, old copy photo (photocopy in the original sense

), so who knows what the original really looked like. We only know it was most likely less contrasty than the copy. How much less is anybody's guess.
I do have to disagree with you about there being no information in the highlights, though. Except for the sky which is truly blown out, there
is variation in the light parts - none of the things done to the image added information, just brought it out. The trick, as you've pointed out, is not to overdo it and make the image muddy.
And I did ask for opinions, didn't I? Yours is a good one.
Carole