I absolutely love this rearrangement and I do not believe the so-called "lack of complexity" of the arrangement itself as stated by some is any deterrant from enjoying this piece. I have never played Dragon Warrior III, but I listen to this arrangement all the time because it is thoroughly enjoyable. The quality of the instruments really helps it sound great, and no, this isn't soaring brass and full orchestral all the way through, and why should it be? If you put it into a particular context, it works even better, such as if this track were to be used in a film score. It's perfect.
The auditorium noise fits very well in my opinion, and it is a great idea to add that extra stroke of realism to a piece. When the hiss levels seem to increase at about 3:28, I think it actually adds more realism to the "recording idea." Since it is a quiet part, it would seem that if this were actually recorded with an orchestra, the recording engineers may increase the volume at that point. And the dramatic release with the brass after the crecendo at 2:55 is totally amazing.
Thanks Russell, excellent work. I'm impressed as always! This one, for me, is a keeper.