Re: “unrealistic and jarring artefacts”
To be replaced with more subtle, but equally incorrect, artefacts.
Technically, no. The process will produce artifacts that have a higher probability of corresponding to the missing data, so probabilistically they're less incorrect.
They're more misleading, because, as you say, they're more subtle. In information-theoretic terms, they increase the uncertainty, because they will be wrong precisely when there's more information entropy missing from that part of the scene, and they'll do a worse job of indicating that information is missing. So this process actually weakens precision while leaving recall the same, in information-retrieval terminology.