Given a choice, I would prefer a slightly sharper image and not worry so much about noise reduction.
Since most (if not all) videos made in the past decade are digitally shot, they have much less grain at source than the older films. I just prefer the cleaner image. I appreciate many people prefer the grain and that’s absolutely fine. All these extra settings can easily be disabled to preserve the original look of the film - I just like a bit extra sharpening.
My choice would be to go for a little bit more sharpness, as it just gives the image a little extra pop when you are sitting several feet away. If I were to watch from 1 foot away, I would not like the sharpening effects so much. Viewing distance, screen size, the quality of your own eyesight and your personal preferences for grain vs no grain all come into play.
I admit that sometimes I am guilty of wanting an over-sharpened picture, and that can look pretty ugly. Still, the ability to quickly toggle on/off a feature gives you the chance to compare.