I probably should not have used the term "restoration" in my earlier post for this is not technically what Mr. Dawson is doing to the CHIMES AT MIDNIGHT soundtrack. What he is doing is revamping the audio in an attempt to improve it.
Now the question is: "Does the soundtrack need to be improved?"
This is where personal preference comes in. We know from interviews that Welles was not happy with the sound to CHIMES, at least in the release prints. He complained that the synch was off in one or two reels and he was discouraged that things like the generator motor could be heard during Margaret Rutherford's big soliloquy. In fact, it goes without saying that Welles was not completely happy with the technical resources he had while working in Europe. So, a film like CHIMES differs from something like KANE where we know that Welles had all the resources he needed to meticulously record and balance the audio; the CHIMES soundtrack was compromised by a low budget and technical issues. Therefore, it is not completely unreasonable to assume that if Welles had today's technology and the money to use it, he might want to try and improve the soundtrack.
Personally, I think the original CHIMES soundtrack is pretty good (better than Welles' other European productions), but knowing that Welles thought it was flawed, wouldn't it be acceptable to try and improve it? Yes? Okay, well then how far? The Dawson approach is to resynch the problem dialogue, apply noise reduction and attempt to create a more realistic spatial range for the film's dialogue and sound effects (we know that Welles was a stickler for a proper spatial range, or would deliberately mess with the spatial range for effect, so this last item is not completely uncalled for). My opinion is that if this work is done, and an eventual re-release clearly labels the soundtrack as having been revamped, I don't think it's such a big deal to also include what could be a missing foley effect to a soundtrack that Welles himself called flawed.
Now, I've gone a long way defending Mr. Dawson's opinion, so let me add a few thoughts to provide some balance. Claiming to know what Welles wanted without documentation is absurd. The choice to include an extra foley effect would be Dawson's alone because he felt the lack of the effect hurt the impact of the scene (again, I don't remember the scene in question, so I have no idea whether I would agree with this). While the 15 minutes of Mr. Dawson's work on CHIMES that I saw and heard did not alarm me, I did find the booming low frequency of the end credit music to be unacceptable. This could very well be part of Dawson's plan to remix the music score into stereo which I AM NOT IN AGREEMENT WITH. Given how poorly the OTHELLO job was done, I would say that I await a revamped CHIMES with trepidation.