Well for starters, your actually wrong about the blur because there is absolutely no blur effect used, on the contrary if you examine the png's closely you will see that the new method actually contains more detail. To test this easily you can zoom in on any given piece in both images and compare, the old one will start to pixelate sooner. Also as bloodshot said, it looks painted in the old method.
I can see what your saying about the color, if you have a huge problem with the color being too vibrant, its a very simple fix, can be fixed without even having to reconvert the files so that's no issue and it shouldn't be the basis for a decision. I am going to stick with my Perfectum unless there is a major consensus that I shouldn't. This is just one image, in places like inside the Shinra building the drastic difference is pretty straight forward. I plan on releasing more comparisons once I have a fair amount of them redone.
edit:just as an example of how quickly the color can be fixed. All I would have to do is run the same adjustments I made here as a batch on palmer's outputs and the extra color will be gone. This is the same image you posted up.
http://img822.imageshack.us/img822/8767/finalfantasyvii20110408.pngalso I just finished correcting the color of all the images I have used perfectum on and I have taken the extra vibrance adjustment out of my action so there should be no more color problems.