I didn't think they looked faded at all. And I'm glad the story is being so faithfull to the original. It was a great story. Unfortunately so many people these days will not even give it a try because it's 40 years old.
But a remake is something they'll give a try because it's "new and modern". That it's also faithful to the original gives them that great story combined with the modern animation techniques that the kids crave.
So you get new fans, but do so in a way that doesn't alienate the older ones. A win-win situtation I'd think.
Of course YMMV.