Paths of Glory is another of my favorite KD films, but it certainly didn't have "mass appeal in its day". On the contrary, it too was a huge flop at the box office, though it won rave critical reviews. (Unsurprisingly, it was banned in France for 20 years.) Like Ace in the Hole, it took the passage of a couple of decades before it won popular acceptance.
Also, I think it's unfair to give this film a lower rating because it lacks "modern cinematography and lighting". In the first place, the film actually is one of the best-looking, best-photographed movies of its period, so personally I see no cause for complaint about it on that score.
But more importantly, it's not fair to judge a film's technical quality on the basis of technology that exists 60 years later. By that standard, every film more than a year or two old deserves demerits because it's in some way "outdated". You can't hold a movie to a level of supposed perfection that wasn't technically possible at the time it was made and wouldn't exist for decades. (For another example, a lot of people criticize the special effects of older science fiction films solely on the basis they weren't done to the same supposed level of realism available today -- as if it was the filmmakers' fault that they didn't have computerized effects and unlimited budgets in 1953.)
You can only legitimately criticize such aspects based on how well a film stands up against its contemporaries, not some arbitrary "modern" standard...which, by definition, is continually evolving and changing. If the film fell short in its cinematography or other such things by the standards of its contemporaries, then criticizing it over such matters would be fair comment. But your criticism is based on comparisons with "modern" films that really aren't valid. And in any case I don't think it's an accurate critique of Ace, which stands out in those respects among other films from its period.
You yourself point out the great things in the film's script, story, direction and acting. Those are the things on which to judge Ace in the Hole today.
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