I still think black and white can work the best depending on what type of movie it is and the mood it's trying to set. You’re right about the old greats. Some of them just wouldn't have been the same if they were in color.
In any case, faded color is worse than black and white. While even Black and White photography is classic and has a physical durability, some of which when processed properly has lasted over 100 years. However there were/are a lot of technical problems with the durability of color films. Faded color films tend to look terrible with purplish shades and lost contrast. I find them very hard to watch. South Pacific is a good example of how bad they can get although the film, (copied to DVD), works pretty well up to a point.
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