I think this is a good discussion though, I can't put my hands on exactly what bothers me about "PCing" works of art, but it does, and I can't also completely disagree with you there. Perhaps this is one of those things where this tension between the two options is just unavoidable and ultimately even desirable.
I think there is something to be said about losing the richness of the original atmosphere, ideas, themes and prejudices to just "conform" to today's own atmospheres, ideas, themes and prejudices. All of the things then become just too bland and equal to each other, as if all the source materials share the same ideological traits we now have (things like equality, feminism, democracy, liberty, hedonism, etc.,etc.). One thing I really loved in The Lion King was how preposterously out-of-PC it was. It was basically the preaching of a holistic "Circle of Life" where everything changes in order to be the same thing, where animals kill each other but it's all "part of the big picture" so everyone's happy about it, where certain species are kings and others are just food (and it's to be this way forever, because the circle never ends).
Now it did have some "PC" censorship over its writing. Simba does end up becoming a vegan or smth, signaling that eating Zebras should not be kosher after all, but that's not the overall message, which is one of retrieving the old Mufasa Circle of Life's idea, which is, in its essence, a kind of a fascist "everyone knows its place" idea.
I wouldn't have "The Lion King" without this asinine ideology in it! I would have loathed it if it really was about breaking this Circle of Life and getting something different done, and this "different" world would be just the most perfect PC things one could imagine.