(Disclaimer: I did a bit of work on the new Blackmoor. Not much at all--and not, I feel, enough to impact my feelings on the book--but still worth considering.)
HellHound, if I may take a stab at this...
Is it possible that the new Blackmoor doesn't grab you like the old one did simply because it's not the old one?
I don't say that to make light of your reaction. In fact, quite the contrary, I can think of lots of old material that I love, and similar new material that I don't, even though I know there's nothing wrong with the new stuff. Sometimes, it's just a combination of the precise wording of the project and the time of life in which I was introduced to it.
Frankly, I'm not convinced that anything made for 3.5 can ever feel like something created for OD&D or 1E. They're very different games in many respects, and the change in mechanics and philosophy can't help but bleed over into even the flavor of the projects designed for the respective systems.
All that said...
I don't know the original Blackmoor very well. But I've gone through the new one, and I like it. I think it's a really nifty book, and a cool setting. It's a fascinating look back at the thoughts and ideas of one of D&D's creators, it's got some interesting notions that I haven't seen elsewhere. More to the point, it feels "organic," like it's a world that actually developed through play.
I won't promise you that it'll feel exactly like the original Blackmoor. But I really do think, fan of the old or not, that you should check it out.