Yup, Blu-rays would be fine ... and yes, Caligula is really one of the lowest quality Blus I've ever seen, though I still think that it's (slightly) better than a reguar DVD. BUT if Arrow does a new transfer, they won't do that in PAL resolution I hope - standard at the time should be 4k or 6k - so a Blu-ray should be possible to get.
Almar, work your magic