For people on the fence about this, here's my personal impressions so far:
1) TMP looks better than it did on DVD, and this is (as far as I'm aware) the first opportunity we've ever had to see the theatrical cut on DVD or BD (so that's an added bonus in itself IMHO). Does it have DNR? Absolutely, but if your only concern is having picture quality that's better than DVD, then this will suffice until the inevitable "Special Collector's Edition" or "Director's Cut".
2) TWOK looks better than it did on DVD, but there is an issue with the color here. The overall picture is more detailed, and DNR has been applied, but it doesn't totally ruin the detail.
3) TSS looks better than it did on DVD (see a pattern emerging here?). More detail, but as with the other films, DNR has been applied (sometimes pretty heavily).
On the first and third films (I think more with the third) I did notice grain (what was left of it) seemingly blobbing and moving unnaturally, which I suspect is an after effect of the heavy DNR application. But those were rare incidents, and hard to spot except for one or two cases (where it was literally terrible to see).
Still haven't watched IV, V or VI, but based on Xylon's screenshots I suspect it'll be more of the same (though the DNR dial seems to have been turned up a few notches for the last three if the screenshots are any indicator).
Could Paramount have done significantly better with this? Definitely. Should the DNR have not been applied? Absolutely. I personally think a more effective use of your time would be writing a letter to Paramount, and, if you bought the set, including a photocopy of your receipt, and explaining your disappointment about how the set was produced. FWIW, the audio (to me anyways) seems fine, great even, so make sure to mention that (yes the set has issues, but it wasn't all bad). According to The Digital Bits, this is the address for Paramount:
Paramount Home Entertainment
5555 Melrose Avenue
Hollywood, CA 90038
And hopefully they listen. Certainly it could be more effective than any forum posting, internet poll or e-mail campaign.
Fight mediocrity: Insist on BD50 discs for all movies longer than 100 minutes, optimized video encodes that fully utilize the available space, lossless audio track, and new masters for catalog titles!