My old schoolness goes back to 2nd e, which I guess, does not really make old school.
I don't recall the fuss about 2nd doing anything wrong with the FR setting.
(Perhaps I wasn't talking with some real old schoolers at the time

).
3e FRCS was a nice package indeed. And while I prefer/preferred Dragonlance back at the time, I believe that FR managed to keep most of tis original charm, when compared to Dragonlance...
What is most annoying about FR, with ANY edition, is the adjudication on magic.
I don't really know if it's the setting's problem, or just the DMs' that I've witnessed using it...
Somehow, when I play in FR, magic is so abundant and wild that it really challenges the world's realism... I guess that's what they call a "high" fantasy setting...
IMHO, Greyhawk is much more balanced in that respect.