Sgt Peppers sounds right to me because that's how it sounds. A bit self referential but you have to remember that things were a bit different back then. Rather a lot of sound engineering stuff in popular music was being invented at the time.
In my view, the sound that was recorded and post processed at the time and released is the correct one. A well preserved record (vinyl) from the time will have a decent representation on it. I don't think you can go back and retrospectively "improve" it. This proposed change is just a remix and a re-interpretation. It is not canonical.