Out of all of the options I'd rather see it cut (not a popular choice is seems). I think, perhaps fairly, genre fans seem slightly allergic to cuts, and people seem to feel it's the last resort. However, to me anything that will detract my attention from the film is something I don't want to see. I don't want to see the fuzzing or a hanging frame (you just need to watch the terrible treatment Studio Canal has given to Breathless to see how annoying a hanging frame can be in a film; which I promptly returned I might add). A cut won't bring me out of thrall of the film. It's hardly a hugely significant nor a poignant scene.
It's completely understandable if Arrow do go to the effort of digital manipulation, considering the majority of people seem to (sadly in my opinion) want that (bunch of George Lucas wannabes or what?
), and I wouldn't hold Arrow in any less admiration than I currently do, however, it would just mean I'd have to hope for another Blu of Deep Red from another company, or even country.