There are some superb Mercury, Philips and Decca recordings from early days.
I found Deutche Grammofon recordings unrealistic, though there are some great performances.
You have named 3 out of 4 record labels (Mercury is the exception) which I consider to show the least consistency, i.e. vast variety of different recording styles, philosophies and results over different decades, countries, conductors and recording teams. It is impossible to comment on that.
he was authorised to send some clips from the recording, both from a multi miked mix and from an old school simply miked setup.
The old school sounded markedly better in instrumental timbre to me but was noisier.
You do not specify the recording, so I cannot comment. But particularly with Baroque oratorios, there is always a reason to use spot microphones, if one wants to retain a minimum of balance between the groups of instruments and intelligibility of the choir. What you describe as ´old school´, was probably the pure signal from the main mic which is meant to have spot microphones added, so from what you describe I would assume a runtime stereophony setup was used and it inherently contains dominant indirect sound, i.e. ´drowns in reverb´.
I have been doing a brief project with the late T. Nishimura, who previously had made some experiments with multi-mic recordings vs. one-points of one and the same performance, with the main mics being placed differently. These are rare examples of both versions being publicly available and allowing a comparison. I have been discussing things with him, and the 2-channel one-points don't stand a chance (the 5-channel are actually much better and closer to what you might imagine).
Nowadays (for like 20 years) the timbral qualities of all instruments and the venue alike, can be retained in a multi-mic mixdown, if it is done properly. There are several classical record labels having brought this to perfection. Can give recommendations, if you are interested in a specific work. Some even managed to achieve this ´long reverb decay´ impression without sacrificing the music.