There is quite a bit of truth to that. I don't know that people refuse to see something had to be done; I think it is more that other attractions could have used an update more. I still think HISTA is more outdated than the original JII.
To go a bit farther, however, this was a huge concern from the time the attraction went into "redesign". From what I have gathered talking to some, the Imagineers assigned to the project had some hugely innovative ideas that would have made JII a wonderful attraction (although not perhaps as "kid friendly" as some would like). However, a budget slash like you wouldn't believe left them with incredibly tight purse strings. That led to the "disappointment" that was JIYI. Then, with the outcry, a tiny budget was tacked on to try and force Figment back in. It was a failed design, and I think many in management would admit to that if pressed on it. Value Engineering has/did not prove a successful venture for TWDC.
On a related note, as a huge fan of the original attraction, I do not dislike the premise of the new attraction. I actually think it could have been on par with, although different than, its predecessor. However, the budget simply wasn't there. The biggest flaw in the attraction: the pure lack of content. The original had almost no blank space in the entire attraction. The new incarnations are far from that detailed. That is the largest flaw IMHO. I honestly would have loved to have seen what they could have done if they had done a HM/IASW/etc. plussing-type renovation with new effects and some new scenes to refresh the attraction.