It is one philosophy to say "We only release the very best-sounding recordings, period." It is a very different thing to say "We release only the best version possible of each of the recordings that we do release."
In the first instance, many popular records would be eliminated from the company's list of releases, because the original recordings weren't up to standards. You can't fix was was never there to begin with (in audio recordings, given available technology).
In the second case, you are providing a service by at least giving people who love the songs on a particular LP the chance to hear them at the best they can be, even if their best isn't really very good (due to inferior recording in the first place).
The second approach probably makes the most money, given how many popular but not-too-well recorded/mastered LPs exist. MFSL chose this approach. There is nothing wrong with that; their aims were still admirable, and they provided a valuable service to music lovers. Many of us treasure many of their recordings.
It does mean, however, that we cannot always assume that every issue that is MFSL is automatically a superb recording; only that it will be one of the better versions of that recording (and at least sometimes the best available).
When in doubt about an MFSL title, it sometimes pays to search over on the Steve Hoffman forum; those guys love to discuss releases in great comparative detail.
It's also true that some of the newest digital re-masterings are better than some of the MFSL releases. I think as long as the original master recordings are in good shape (for analog, or in high-res shape for digital), we'll see better and better releases being made, using improved technologies --as least in the digital realm. But this will only be done for major/popular recordings, at least for some time to come, due to expense. Companies rarely do what isn't very profitable, and if they do, they rarely do it for long.