That's true, but at a given bitrate (until you get to very high bitrates), the compressed original will usually look worse and less sharp because so many bits are spent trying to encode the original grain. As a result, that original grain tends to get "smeared" over larger areas, making it look muddy. You lose sharpness in areas of the actual scene because it's trying (and often failing) to encode sharp grains.
Film Grain Synthesis makes sense for streaming where bandwidth is limited, but I'll agree that in the examples, the synthesized grain doesn't look very grain-like. And, depending on the amount and method of denoising, it can definitely blur details from the scene.
I can see why they want to compare against the actual local copy of the video with the natural grain. But that’s the perfect copy that they can’t actually hope to match.
But still, they have:
> A source video frame from They Cloned Tyrone
> Regular AV1 (without FGS) @ 8274 kbps
> AV1 with FGS @ 2804 kbps
Just to emphasize the problem, would it be nice to see:
Regular AV1 (without FGS) @ 2804 kbps
It should look really bad, right? Which would emphasize their results.